Cadent issues second Transition Bond

Mar 12 2021 corporate

Cadent, has today (12/03/2021) priced and agreed its second issuance under its Transition Bond Framework – a nine-year EUR 625 million bond - to invest in the evolution of the gas distribution network.

Innovative transition bonds are designed to help issuers shift to greener business activities and decarbonise their operations.

The move by Cadent, is part of the company’s commitment to help deliver a low-carbon economy and reduce greenhouse gas emissions by 2050.

Cadent will use the proceeds of the bond to replace pipeline to facilitate in the future to carry hydrogen and other low-carbon gases and reduce methane leakage.

David Moon, Director of Treasury at said, “Cadent is delighted to once again issue a transition bond. This type of financing has an important role to play in fostering the transition to a low-carbon economy in line with our strategy of improving performance and service levels and delivering more sustainable outcomes for our customers, stakeholders and our business.”

ENDS

Cadent published this week its Impact Report after issuing the UK first transition bond in March 2020.
https://cadentgas.com/nggdwsdev/media/Downloads/investor%20relations/Transition-Bond-Impact-Report-March-2021.pdf

Cadent

Cadent is the UK’s largest gas distribution network with a 200-year legacy. We are in a unique position to build on strong foundations whilst encouraging the curiosity to think differently and the courage to embrace change. Day to day we continue to operate, maintain and innovate the UK’s largest gas network, transporting gas safely and protecting people in an emergency. Our skilled engineers and specialists remain committed to the communities we serve, working day and night to ensure gas reaches 11 million homes from Cumbria to North London and the Welsh Borders to East Anglia, to keep your energy flowing.

Future of Gas: Here at Cadent we support the Government’s plans to reach Net Zero by 2050. That means we’re backing the introduction of hydrogen as a low carbon alternative to natural gas for the future. We know people love the controllability of gas and, with our network already in place, it makes sense to switch to the lower carbon alternative offered by hydrogen, which we believe can keep homes and businesses warm for generations to come.

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