CUC raises $50m to fund new diesel plant
(CNS Business): Grand Cayman’s power supplier has raised $50 million in the US markets from an unsecured private debt placement. Caribbean Utilities Company (CUC) raised the cash from different institutional investors to finance the development of a 39.7 MW diesel power plant and other capital expenditures. CUC was recently awarded the contract to supply itself the additional generation capacity that the company thinks will be needed to meet the island’s growing power demands after a competitive bid process managed by the Electricity Regulatory Authority (ERA).
President Richard Hew said securing the financing on favourable terms was a reflection of the “continued stability and strong credit ratings†of CUC and the Cayman Islands.
Significant local criticism has been made about the plan to continue using diesel to generate future power but the ERA recently made it clear that this bid had to be for secure fixed power. At present CUC’s licence only requires the firm to generate a small percentage via alternative power sources and as a result the firm is continuing to invest in diesel.
“Significant and ongoing capital investments are necessary for electric utilities and this funding will facilitate the completion of the largest generation expansion project to date undertaken by the Company,†Hew stated in a release. “The expansion follows the selection of the Company by the Cayman Islands Electricity Regulatory Authority to provide additional generation capacity subsequent to an open and competitive bid process. CUC remains committed to providing a safe, efficient and reliable electricity service to Grand Cayman, as it has for over 48 years.”
The company raised US$30 million 3.65% Senior Unsecured Notes which is due 25 November 2029, US$5 million 3.85% Senior Unsecured Notes due 25 November 2034, andUS$15 million 4.53% Senior Unsecured Notes due 25 November 2046.
The debt offering was privately placed with institutional investors in the United States with CIBC World Markets Corp. acting as sole placement agent.
Category: Local Business, Technology
Lets just hope since they “Raised” 50m they don’t have to do anymore “Raising”.
Lol RAISED It that’s what they call it – 50m – robbed from the residents and businesses with their outrageous FEES NOT USAGE