Mr. Richard Hew reports

CARIBBEAN UTILITIES COMPANY, LTD. CLOSES RECORD US$160 MILLION PRIVATE PLACEMENT

Caribbean Utilities Co. Ltd. has closed a record $160-million (U.S.) private placement of senior unsecured notes with institutional investors to support grid modernization, resilience and sustainable growth. The transaction consists of:

• $70-million (U.S.) of 6.09 per cent senior unsecured notes maturing Aug. 19, 2041;
• $30-million (U.S.) of 6.34 per cent senior unsecured green notes maturing Aug. 19, 2051; and
• $60-million (U.S.) of 6.24 per cent senior unsecured notes maturing May 12, 2042.

This landmark financing, the largest private placement in the company's history, also represents Caribbean Utilities' first transaction utilizing CIBC and Scotiabank as joint placement agents.

The financing consists of an initial drawdown of $100-million (U.S.) scheduled for Aug. 19, 2026, and $60-million (U.S.) delayed draw facility available on May 12, 2027. Of the initial financing, $30-million (U.S.) 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 finance Caribbean Utilities' multiyear capital investment program 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 Caribbean Utilities' 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.

Caribbean Utilities 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, Caribbean Utilities 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 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 Caribbean Utilities' financing objectives and were pleased to participate in this transaction.

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 and distribution licence and a 25-year non-exclusive generation licence granted by the Cayman Islands government. 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.

We seek Safe Harbor.