Green Bond Fact Sheet

Cadent Gas Limited

Date: 30/06/2020

Issue date: 11-03-2020 Maturity date: 11-03-2032 Tenor: 12Issuer nameCadent Gas Limited

Amount issued

EUR500m/USD555.8m

Country of riskUK

CBI Database

Included

Issuer type1

Non-FinancialCorporate

Bond type

N/A

Green bond framework

N/A

Second party opinion

DNV GL

Certification Standard

Not certified

Assurance report

N/A

Certification verifier

N/AGreen bond rating

N/A☒ Energy☐ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☒ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Buildings☐ Certified Buildings☐ HVAC systems☒ Energyperformance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☐ Electric vehicles☐ Low emission
vehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
Reporting

Until full allocation impact and allocation reporting will be available within one year fromissuance and annually thereafter in a standalone publication. Material changes will also bereported.
The allocation report will include:
list of eligible projects (re)financed
aggregated amount of allocation of the net proceeds at category levelproportion of net proceeds used for financing versus refinancing
the balance of any unallocated proceeds
Where feasible there will be impact reporting with a range of KPIs.

Company information

Cadent Gas Limited is a gas distribution company in the UK with the largest gas distribution
network supplying customers in North West, West Midlands, East of England and North
London. The company does not produce or own the gas that passes through their pipeline
networks.

Firsts, records andcertifications
Proceeds description

Cadent names four eligible project categories:••••

Retrofit of gas transmission and distribution networks
Renewable Energy
Clean Transportation
Energy Efficient Buildings

Types of projects within each category have been outlined and there are selection criteria
in place. These are aligned with the relevant thresholds described in the EU Sustainable
Finance Taxonomy.

Climate Bonds view

Underwriters
Deal comments

Business transitions to low-carbon activities, and therefore transition bonds, play anincreasingly important a role in the debt capital markets. There have been few such bonds
so far, with Marfrig (Brazil) being the first issuer last year in September to use thisparticular label.
Cadent’s deal marks the first of its kind in the UK and the small number of transition bondsin the market underscores the fact that transition instruments remain in still rather
uncharted, although rapidly evolving, territory. Whilst the subject is somewhat
controversial and heavily debated in the finance community, transition bonds present
significant potential to facilitate climate change mitigation projects in hard-to-abate
industries. As such, Cadent’s bond is a good example for financing projects that areambitious enough to be classified as green under the Climate Bonds Taxonomy. By doing
so, the deal also contributes to the UK’s National Adaption Plan.
Natwest, BNP, CACIB, MizuhoCredit rating

BBB+ (S&P)
Baa1 (Moody’s)A- (Fitch)

Pricing summary••

Coupon: 0.750%
Price: 98.638%

Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign