Caribbean Utilities closes $160 million private placement

Canada NewsWire

Caribbean Utilities Company, Ltd. Class A Ordinary Shares are listed for trading in United States dollars on the Toronto Stock Exchange under the trading symbol "CUP.U".

GRAND CAYMAN, Cayman Islands , Aug. 19, 2026 /CNW/ -- Caribbean Utilities Company, Ltd. ("CUC" or the "Company") today announced the closing of a record US$160 million private placement of Senior Unsecured Notes (the "Notes") with institutional investors to support grid modernization, resilience and sustainable growth. The transaction consists of:

US$70 million of 6.09% Senior Unsecured Notes maturing August 19, 2041,

US$30 million of 6.34% Senior Unsecured Green Notes maturing August 19, 2051, and

US$60 million of 6.24% Senior Unsecured Notes maturing May 12, 2042.

This landmark financing, the largest private placement in the Company's history, also represents CUC's first transaction utilizing CIBC and Scotiabank as Joint Placement Agents.

The financing consists of an initial drawdown of US$100 million scheduled for August 19, 2026, and US$60 million delayed draw facility available on May 12, 2027. Of the initial funding, US$30 million will be issued as Senior Unsecured Green Notes under the Company's Green Financing Framework. The proceeds will be used to repay short-term indebtedness and fund CUC's multi-year capital investment programme focused on grid modernization, system resiliency, grid hardening, and low carbon transportation initiatives. These investments are intended to enhance the network's resilience to climate-related risks and position the Company to meet Grand Cayman's growing electricity needs. The inclusion of additional Green Notes highlights CUC's commitment to sustainable infrastructure investment and aligns its financing strategy with projects that deliver measurable environmental benefits and long-term value for customers and Grand Cayman. For more information on CUC's Green Financing Framework visit, www.cuc-cayman.com/sustainability .

CUC anticipates allocating the proceeds from the Green Notes toward eligible projects within three of the four categories outlined in its Green Financing Framework: energy efficiency, climate change adaptation, and clean transportation. These investments are intended to support a more resilient, efficient, and sustainable electricity system while advancing the environmental objectives of both the Company and the Cayman Islands National Energy Policy. Importantly, CUC will continue to prioritize green projects that support customer affordability, recognizing that the transition to a more sustainable energy future must also deliver practical, long-term value for customers. The Green Financing Framework was established to support investments that deliver measurable environmental benefits and align with the Green Bond Principles issued by International Capital Markets Association and Green Loan Principles issued by the Loan Market Association, the Loans Syndications and Trading Association and the Asia Pacific Loan Market Association. The Framework was assessed by second-party opinion provider Sustainable Fitch in 2024, which rated the Framework as "Excellent," the highest assessment category.

President and Chief Executive Officer, Mr. Richard Hew, stated: "This transaction represents an important milestone for CUC. As the largest private placement in the Company's history and our first financing executed with joint placement agents, it demonstrates the confidence that both existing and new institutional investors have in CUC, our strategy, and the long-term fundamentals of the Cayman Islands economy."

Representatives of CIBC and Scotiabank noted their support for CUC's financing objectives and were pleased to participate in this transaction.

The Notes will not be registered under the United States Securities Act of 1933 (the "Securities Act"), as amended, nor will they be registered under any state securities laws. Unless so registered, the Notes may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

For more information about CUC, please visit www.cuc-cayman.com .

The principal activity of the Company is to generate, transmit and distribute electricity in its licence area of Grand Cayman, Cayman Islands, pursuant to a 20-year Transmission & Distribution ("T&D") Licence and a 25-year non-exclusive Generation Licence (the "Generation License" and together with the T&D Licence, the "Licences") granted by the Cayman Islands Government (the "Government", "CIG"). The T&D Licence, which expires in April 2028, contains provisions for an automatic 20-year renewal and the Company has reasonable expectation of renewal until April 2048. The Generation Licence expires in November 2039. Further information is available at www.cuc-cayman.com .

Caribbean Utilities Company, Ltd. ("CUC" or "the Company"), on occasion, includes forward-looking statements in its media releases, Canadian securities regulatory authorities filings, shareholder reports and other communications. Forward-looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as "expects", "anticipates", "plan", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedule", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". Forward-looking statements are based on underlying assumptions and management's beliefs, estimates and opinions, and are subject to certain risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates. Such risks and uncertainties include but are not limited to operational, general economic, market and business conditions, regulatory developments and weather conditions. CUC cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize or should underlying assumptions prove incorrect. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

SOURCE Caribbean Utilities Company, Ltd.

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Canada Newswire

August 19, 2026 - 4:42 PM PDT

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