Aug 1 (Reuters) - A consortium of Canada's Indigenous

communities is preparing a C$1 billion ($721.66 million) bond

offering to fund the purchase of a minority stake in TC Energy's ( TRP )

natural gas pipeline system, Bloomberg News reported on

Thursday, citing people familiar with the matter.

The bond deal may come to the market in the next several

weeks, the report added.

Earlier this week, the pipeline operator said it has entered

an agreement which will enable an Indigenous-owned investment

partnership to purchase a 5.34% stake in the NGTL system and

Foothills assets in western Canada.

The deal is backed by the Alberta Indigenous Opportunities

Corporation, a provincial crown corporation, and was negotiated

by a consortium committee representing 72 communities closest to

the pipeline system in Alberta, British Columbia and

Saskatchewan.

The transaction is expected to close in the third quarter.

($1 = 1.3857 Canadian dollars)