First Solar, America’s leading solar manufacturer, has announced a major financial milestone as it secures a five-year revolving credit and guarantee facility worth $1 billion. The facility, which includes a provision of up to $250 million for letters of credit issuance, was finalized on June 30, 2023. J.P. Morgan Chase Bank played a pivotal role as the Lead Arranger and Administrative Agent for the facility.
Bank of America, Citibank, Credit Agricole CIB, and PNC Bank are among the additional banks participating as Joint Lead Arrangers in the facility. Joining participating lenders in the facility are BNP Paribas, Goldman Sachs Bank USA, HSBC Bank USA, MUFG Bank, Standard Chartered Bank, and Truist Bank.
Mark Widmar, CEO of First Solar, expressed his confidence in the company’s growth and stated, “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 aims to expand its capacity by approximately 8 gigawatts (GWDC) between the latter half of 2023 and 2026. By 2026, the company expects to have a global manufacturing footprint exceeding 20 GWDC. First Solar has planned to commission a new 3.4 GWDC manufacturing facility in India in the latter part of this year. Additionally, it plans to establish a new 3.5 GWDC factory in Alabama by late 2024 and expand its existing footprint in Ohio by 0.9 GWDC by 2026. The company is also investing up to $370 million in the construction of a research and development center in Perrysburg, Ohio, which is expected to be commissioned by 2024.
Mike Lister, Head of J.P. Morgan Power & Renewables Corporate Banking, expressing the pride in supporting First Solar commented, “J.P. Morgan is proud to support First Solar’s efforts to accelerate the transition to a low-carbon economy. We’re focused on helping clients meet the world’s need for secure, reliable, and affordable energy while advancing long-term clean energy solutions to reduce our global carbon footprint.”
