Issuer:

TransCanada Corporation (“TransCanada” or the “Corporation”).

Issue:

Treasury offering of 50,800,000 common shares (the “Common Shares”), before giving effect to the over-allotment option.

Issue Price:

C$31.50 per Common Share.

Issue Amount:

C$1,600,200,000, before giving effect to the over-allotment option.

Over-allotment Option:

The Corporation has granted the Underwriters an option, exercisable at the Issue Price at any time until 30 days following the closing of the Issue, to purchase up to an additional 7,620,000 Common Shares / C$240,030,000 to cover over-allotments, if any.

Use of Proceeds:

The net proceeds of the Issue will be used to fund capital projects of the Corporation (including the acquisition of the remaining 20% interest in the Keystone Pipeline System) and for general corporate purposes and to repay short-term indebtedness.

Dividends:

TransCanada currently pays a quarterly dividend of C$0.38 per Share (C$1.52 per share annually). Purchasers under the issue will be entitled to receive the dividend payable on July 31, 2009, payable to shareholders of record as at June 30, 2009.

Form of Offering:

Bought offering by way of a shelf prospectus in all provinces and territories of Canada, in the United States pursuant to the Multi-Jurisdictional Disclosure System and internationally as expressly permitted by the Corporation.

Listing:

Application will be made to list the Common Shares on the Toronto Stock Exchange (the “TSX”) and on the New York Stock Exchange (the “NYSE”). The existing common shares of TransCanada are listed on the TSX and the NYSE under the symbol “TRP”.

Eligibility:

Eligible for RRSPs, RRIFs, RESPs, DPSPs and TFSAs.

Joint Bookrunners:

RBC Capital Markets, BMO Capital Markets, TD Securities Inc.

Selling Concession:

C$0.55 per Common Share.

Closing:

June 24, 2009