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First Solar Enters into Five-Year Revolving Credit Facility for USD 1 Billion

The facility includes up to USD 250 million which is available for the issuance of letters of credit. J.P. Morgan Chase Bank acted as lead arranger and is administrative agent for the facility.

July 07, 2023. By Anurima Mondal

First Solar has entered into a five-year revolving credit and guarantee facility for USD 1 billion. The facility includes up to USD 250 million which is available for the issuance of letters of credit.

The US-headquartered company has embarked on a strategy of unprecedented growth which will add approximately 8 gigawatts (GWDC) of new capacity between the second half of 2023 and 2026 when it expects to have a global manufacturing footprint of over 20 GWDC.

Talking about the development, Mark Widmar, CEO, First Solar said, “This agreement underscores First Solar’s bankability and is underpinned by the strong fundamentals that drive our business today. We are focused on exiting this decade in a stronger position than we entered it and liquidity is a crucial differentiator that we intend to maintain. This revolving credit facility provides us the financial headroom and flexibility we need, while also balancing our ability to grow in response to demand for our technology.”

First Solar is scheduled to commission a new 3.4 GWDC manufacturing facility in India in the second half of this year while expecting to add a new 3.5 GWDC factory in Alabama in late 2024 and expanding its existing footprint in Ohio by 0.9 GWDC by 2026.

It is also investing up to USD 370 million in constructing a new research and development center in Perrysburg, Ohio, which is expected to be commissioned in 2024.

J.P. Morgan Chase Bank acted as lead arranger and is administrative agent for the facility. Additional banks participating in the facility include Joint Lead Arrangers Bank of America, Citibank, Credit Agricole CIB, and PNC Bank, as well as participating lenders BNP Paribas, Goldman Sachs Bank USA, HSBC Bank USA, MUFG Bank, Standard Chartered Bank, and Truist Bank.

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First Solar

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Revolving Credit Facility

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