TransCanada Corporation Issues $1.27 Billion of Common Shares

On May 13, 2008, TransCanada Corporation completed an offering of 30,200,000 common shares pursuant to a prospectus supplement, dated May 5, 2008, to the shelf prospectus, dated January 31, 2007, for gross proceeds to TransCanada of approximately $1.1 billion. An additional 4,530,000 common shares were issued on the exercise of an over-allotment option on May 13, 2008, for proceeds of approximately $165 million. TransCanada's gross proceeds from this offering totalled approximately $1.27 billion.

The offering was underwritten by a syndicate led by BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., and TD Securities Inc., and included Scotia Capital Inc., CIBC World Markets Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., UBS Securities Canada Inc., Canaccord Capital Corporation and FirstEnergy Capital Corp.

TransCanada was represented in-house by Executive Vice President, Corporate and General Counsel Sean McMaster, Vice President, Finance Law Robert Pitt, and Senior Legal Counsel Bruce Nysetvold; and by David Lefebvre, David Taniguchi, Charles Kraus, Charlotte Feasby and Benjamin Hudy (securities) and David Weekes (tax) of Stikeman Elliott LLP as Canadian counsel; and by Michael Hermsen, Jennifer Keating and Nina Flax of Mayer Brown LLP as US counsel. The underwriters were represented by Kent Kufeldt, Jamie Gagner and Kirsten Sklar (securities) and Darren Hueppelsheuser (tax) of Macleod Dixon LLP as Canadian counsel; and by Christopher Cummings, Stephen Centa, Jonathan Handyside and Nathalie Pierre-Louis of Shearman & Sterling LLP as US counsel.