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CUC secures $80m loan

Business 17 Nov, 2022 Follow News

CUC chief Richard Hew

Caribbean Utilities Company has announced the closing of US$80 million 5.88% Senior Unsecured Notes.

The 30-year debt offering was privately placed with institutional investors in the United States with RBC Capital Markets acting as sole placement agent. Proceeds from the offering, due 15 November 2052, will be used to repay short-term indebtedness and to finance ongoing additions and upgrades to CUC’s generation and transmission and distribution systems.

CUC provides electricity to Grand Cayman under a non-exclusive Electricity

Generation Licence expiring in 2039 and an exclusive Electricity Transmission and Distribution Licence expiring in 2028.

Richard Hew, President and Chief Executive Officer, said: “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 as a whole.

“Significant and ongoing capital investments are necessary for electric utilities to meet anticipated growth in customer needs. CUC remains committed to providing a safe, efficient and reliable electricity service to Grand Cayman, as it has for over 56 years.”

The notes will not be registered under the United States Securities Act of 1933, 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.

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