INPP has a 7.25% interest in Cadent, which is the UK's largest gas distribution network (GDN), bringing gas to 11 million homes and businesses.
THE BACKGROUND
Cadent manages a network of more than 130,000 kilometres of pipes, most of them underground, which transport gas throughout the North West, West Midlands, East Midlands, South Yorkshire, East of England and North London.
GDNs are well-established, predictable, and strong cash-yielding businesses. Key attributes include:
- Highly-predictable, long-term, low-volatility cash flows
- A stable regulatory environment
- Very long-life assets
- Strong levels of inflation linkage
- Projected strong returns
INPP’s investment in Cadent strengthens its focus on investments in regulated assets delivering long-term, sustainable, inflation-linked revenues. This began in 2011 in the offshore transmission (OFTO) sector and then with investment into the Tideway project in 2015. The GDN assets are complementary to the other assets in INPP’s portfolio in terms of length and predictability of cash flow and also inflation protection.
Facts
Length of gas pipeline network
130,000km
Proportion of UK population served
c.50%