Enbridge Income Fund Holdings Inc. Announces $1.075-Billion Sale of South Prairie Region Assets

CALGARY, ALBERTA -- (Marketwired) -- 09/29/16 -- Enbridge Income Fund Holdings Inc. (TSX: ENF) ("ENF") announced today that an affiliate of Enbridge Income Fund (the "Fund") has entered into an agreement for the sale of the Fund's liquids pipelines assets in the South Prairie Region (the "Assets") to Tundra Energy Marketing Limited ("TEML") for CAD$1.075 billion in cash. Closing of the transaction is expected to occur around the end of the fourth quarter of 2016 and is subject to customary closing conditions, including the Canada Transportation Act and Canadian Competition Act approvals.

"We're very pleased with this agreement, which enables the Fund to monetize non-core assets at an attractive valuation," said ENF President Perry Schuldhaus. "We expect the transaction to be accretive to the Fund Group's available cash flow from operations on a per unit basis and to generate a pre-tax gain of approximately $850 million," added Mr. Schuldhaus.

"Proceeds from the sale will be re-invested in the Fund's $9-billion portfolio of attractive secured organic growth projects including the Wood Buffalo Extension, Athabasca Twin and Norlite projects, which are expected to come into service in 2017, and grow cash flow available for distribution," added Mr. Schuldhaus. "Importantly, the funds generated by this disposition will be sufficient to meet all of the Fund's currently anticipated equity capital requirements through 2017 to support the organic growth that we expect will drive 10% annual increases in ENF's dividend through 2019."

Shipper commercial arrangements and contracts are expected to remain in place and we expect crude oil and NGL volumes will continue to flow onto the Enbridge Mainline at Cromer under an interconnection agreement with TEML and continue to provide customers with access to premium markets for their production.

The Assets included in the agreement are liquids pipelines and facilities in southeast Saskatchewan and southwest Manitoba, and include:

--  The Saskatchewan Gathering, Westspur, and Weyburn pipeline systems,
    which consist of more than 1,600 kilometers of crude oil and liquids
    gathering pipelines and approximately 547 kilometers of trunk line, and
    related storage and other facilities, that deliver approximately 175,000
    barrels per day of crude oil to Enbridge's Mainline system at Cromer,
    Manitoba;
--  The Manitoba interconnection facilities that connect the Westspur and
    Bakken Expansion Pipelines to TEML's Cromer Terminal; and
--  The Virden NGL system, which connects natural gas liquids production to
    the Enbridge Mainline System facilities at Cromer.

The Bakken Expansion Pipeline, which enables delivery of crude oil production in North Dakota to the Mainline System at Cromer, Manitoba, is excluded from the transaction.

"To ensure the continued safe and reliable operation of these Assets, our South Prairie Region team will be transitioning to TEML following close of the transaction," said Guy Jarvis, Enbridge Executive Vice President, Liquids Pipelines and Major Projects. "We thank the team for their important contribution to the safe operation of these Assets and will continue to work closely with TEML to facilitate a smooth transition of those team members."

Forward Looking Information

Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, statements with respect to the transaction and the closing thereof; anticipated use of proceeds; equity capital requirements; anticipated cash flow and dividend growth; accretion to available cash flow from operations; expected pre-tax gain; in service dates of growth projects; sources of funding; and financing flexibility. Although ENF believes these statements are based on information which is current, reasonable and complete, these statements are necessarily subject to a variety of assumptions, risks and uncertainties pertaining but not limited to the timing and completion of the transaction, including receipt of regulatory approvals and the satisfaction of other conditions precedent and transition matters; estimated future cash flow and dividends; expected available cash flow from operations; financial strength and flexibility; debt and equity market conditions; tax rates and changes; completion of growth projects; and economic and competitive conditions. A further discussion of the risks and uncertainties facing ENF and the Fund can be found in the filings of ENF and the Fund with Canadian securities regulators. While ENF makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, ENF assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

ABOUT ENBRIDGE INCOME FUND HOLDINGS INC.

Enbridge Income Fund Holdings Inc. is a publicly traded corporation. The Company, through its investment in Enbridge Income Fund indirectly holds high quality, low risk energy infrastructure assets. The Fund's assets consist of a portfolio of Canadian liquids transportation and storage businesses, including the Canadian Mainline, the Regional Oil Sands System, the Canadian segment of the Southern Lights Pipeline, Class A units entitling the holder to receive defined cash flows from the US segment of the Southern Lights Pipeline, a 50 percent interest in the Alliance Pipeline, which transports natural gas from Canada to the U.S., and interests in more than 1,400 MW of renewable and alternative power generation assets. Information about Enbridge Income Fund Holdings Inc. is available on the Company's website at www.enbridgeincomefund.com.

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