Mr. Richard Hew reports

CARIBBEAN UTILITIES COMPANY, LTD. ANNOUNCES CLOSING OF FIRST US$40 MILLION TRANCHE OF AGGREGATE US$60 MILLION PRIVATE PLACEMENT OF SENIOR UNSECURED NOTES

Caribbean Utilities Co. Ltd. has closed the first tranche in the amount of $40-million (U.S.) of an aggregate $60-million (U.S.) private placement of $40-million (U.S.) 3.90 per cent senior unsecured notes due Nov. 25, 2031, and $20-million (U.S.) 4.64 per cent senior unsecured notes due Nov. 25, 2048. The $40-million (U.S.) 3.90 per cent notes closed today.

The second tranche of $20-million (U.S.) 4.64 per cent notes is scheduled to close in May, 2017. The debt offering was privately placed with institutional investors in the United States with CIBC World Markets Corp. acting as sole placement agent. Proceeds from the offering will be used to repay short-term indebtedness and to finance continuing additions and upgrades to Caribbean Utilities' generation and transmission and distribution system.

President and chief executive officer Richard Hew stated, "We are pleased to secure this financing on favourable terms, a reflection of the continued stability and strong credit ratings of the company and the jurisdiction as a whole." He added: "CUC's strong credit ratings help secure access to efficient capital markets. Significant capital investments are necessary to sustain a reliable electricity service to Grand Cayman, which CUC has remained committed to for over 50 years."

Caribbean Utilities provides electricity to Grand Cayman, Cayman Islands, under a non-exclusive electricity generation licence expiring in 2039 and an exclusive electricity transmission and distribution licence expiring in 2028.

We seek Safe Harbor.