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, May 15,
2024 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC"
or "the Company") announced the closing of a US$80 million of Senior Unsecured Notes (the
"Notes") consisting of US$40 million
6.17% Senior Unsecured Green Notes due May
15, 2039, US$10 million 6.37%
Senior Unsecured Green Notes due May 15,
2049, and US$30 million 6.37%
Senior Unsecured Notes due May 15,
2049.
The debt offering was privately placed with institutional
investors with CIBC acting as sole placement agent and sole green
structuring agent. Proceeds from the offering will be used to repay
short-term indebtedness, and to finance ongoing additions and
upgrades to CUC's generation, transmission, and distribution
systems.
This offering marks the Company's inaugural release of notes
under its Green Financing Framework (the "Framework"), established
in April 2024, and is also the
premier instance of green bonds being issued by a corporate entity
in the Cayman Islands to date. The
Company plans to dedicate $50 million
of the net proceeds from the sale of these Notes towards the
funding or refinancing of new and/or current qualifying green
initiatives, in accordance with the standards outlined in the
Framework.
The Framework was assessed by second-party opinion provider,
Sustainable Fitch, a leading provider of second-party
opinions. Sustainable Fitch assessed the Framework as
"Excellent" on a scale of Not Aligned, Aligned, Good and Excellent.
This endorsement underscores the Framework's robustness and the
Company's dedication to transparency and accountability in its
environmental initiatives. The Framework has been developed in
conjunction 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.
Proceeds from transactions under the Framework can be allocated
to four categories: renewable energy, energy efficiency, climate
change adaptation, and clean transportation. These categories are
deemed to be in alignment with CUC's sustainability strategy and
the Cayman Islands' National
Energy Policy.
President and Chief Executive Officer, Mr. Richard Hew stated, "We are pleased to secure
this long-term financing on favourable terms, a reflection of the
continued sustainability and strong credit ratings of the Company
and the jurisdiction. At CUC, we recognize the crucial role of
environmental responsibility, transparency, and accountability in
fostering sustainable development. Hence, we are delighted to
meet energy demands and climate parameters through the
establishment of CUC's inaugural green financing framework to
refinance and finance eligible projects that will enhance the
sustainability of investment opportunities, prioritizing projects
with positive environmental impacts. We aim to propel measurable
environmental impacts by financing projects that contribute to
carbon reduction, energy efficiency, climate adaptation, and clean
transportation."
Mark St. Hill, Chief Executive
Officer, CIBC Caribbean commended the CUC team on the successful
closing and stated: "Our CIBC team is honoured to have been able to
support the CUC team in delivering on their sustainability
objectives, and this aligns with our strategic focus and commitment
to support the energy transition in the region."
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.
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.