First Solar, Inc. has borrowed a five-year revolving credit and guarantee facility for $1 billion from a consortium of banks. First Solar, Inc. can use up to $250 million for the issuance of letters of credit.
J.P. Morgan Chase Bank is the Lead Arranger and is the Administrative Agent for the facility. Other participating lenders 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.
“This agreement underscores First Solar’s bankability and is underpinned by the strong fundamentals that drive our business today,” said Mark Widmar, chief executive officer, First Solar. “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, the sole US-based company among the world’s top ten solar manufacturers, is pursuing a growth strategy. It wants to increase its capacity by approximately 8 gigawatts (GWDC) by 2026, resulting in a global manufacturing footprint exceeding 20 GWDC. In the second half of this year, First Solar plans to commission a new 3.4 GWDC manufacturing facility in India. Additionally, they are also expected to establish a 3.5 GWDC factory in Alabama by late 2024 and expand their existing presence in Ohio by 0.9 GWDC by 2026. As part of its expansion efforts, First Solar is investing up to $370 million to construct a research and development center in Perrysburg, Ohio, which is expected to be operational by 2024
“J.P. Morgan is proud to support First Solar’s efforts to accelerate the transition to a low-carbon economy,” said Mike Lister, Head of J.P. Morgan Energy Power & Renewables Corporate Banking. “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.”