Enbridge Income Fund Receives Proposal for Transfer of Canadian Liquids Pipeline Business and Renewable Energy Assets from Enbridge

CALGARY, ALBERTA--(Marketwired - March 31, 2015) - Enbridge Income Fund (the Fund) and Enbridge Income Fund Holdings Inc. (TSX:ENF) (the Company) today announced receipt of a formal proposal from Enbridge Inc. (Enbridge) for the transfer to the Fund (the Transaction) of Enbridge's Canadian liquids pipelines business owned by Enbridge Pipelines Inc. and Enbridge Pipelines (Athabasca) Inc., along with certain Canadian renewable energy assets (collectively, the "Assets").

If completed, the Transaction would be transformational for the Fund, significantly increasing its business scale and scope as well as providing a highly transparent source of long-term growth. Based on Enbridge's financial assumptions and projections, the Company's dividend could be increased by approximately 10% on closing of the Transaction and by a further 10% in 2016 and each year thereafter through 2019. Dividend growth subsequent to the Transaction is expected to be driven by a combination of the substantial organic growth within the liquids pipelines business and by the Company increasing its ownership in the Fund over time.

"This is an important step forward for a transaction that will transform the Fund into a premier Canadian energy infrastructure investment vehicle," said Perry Schuldhaus, the Company's president. "The Assets will add to an already strong and diversified asset base and provide the Fund with a substantial and visible source of future growth in earnings and distributions," added Mr. Schuldhaus.

The Transaction is progressing according to the timeline disclosed in Enbridge's December 3, 2014 news release. Closing of the Transaction is subject to obtaining all necessary approvals, including the approval by the Boards of the Company and Enbridge Commercial Trust (collectively, the "Boards"), the approval of the shareholders of the Company and regulatory approvals. The Boards have formed a joint special committee (the "Special Committee") comprised of independent directors of the Company and independent trustees of Enbridge Commercial Trust to review and consider the proposal from Enbridge and negotiate the terms and conditions of the definitive agreement. The Special Committee has retained independent financial, legal, technical and market fundamentals advisors to assess the Transaction. BMO Capital Markets has been retained to act as financial advisor to the Special Committee and to deliver a formal valuation of the Assets and an opinion as to whether the consideration to be paid for the Assets is fair, from a financial point of view, to the Fund, Enbridge Commercial Trust, the Company and the shareholders of the Company, other than Enbridge.