First Solar signs five-year revolving credit and guarantee facility for $1 bn

First Solar PV modules

First Solar announced its five-year revolving credit and guarantee facility for $1 billion indicating the company’s focus on maintaining financial strength and flexibility while pursuing its growth strategy.

The facility provides First Solar with the necessary liquidity and headroom to respond to the increasing demand for its solar technology.

The involvement of prominent banks such as J.P. Morgan Chase Bank, Bank of America, Citibank, and others demonstrates confidence in First Solar’s business model and growth prospects. These banks, along with other participating lenders, recognize the potential of the solar industry and the importance of supporting a leading player like First Solar.

As the only US-headquartered company among the world’s ten largest solar manufacturers, First Solar is well-positioned to capitalize on the growing global demand for renewable energy solutions. Its strategic growth plan aims to add approximately 8 gigawatts of new capacity between 2023 and 2026, expanding its global manufacturing footprint to over 20 gigawatts.

The company’s expansion plans include the commissioning of a 3.4 gigawatt manufacturing facility in India in the second half of this year. Additionally, First Solar plans to establish a 3.5 gigawatt factory in Alabama by late 2024 and expand its existing footprint in Ohio by 0.9 gigawatts by 2026. These investments indicate the company’s commitment to scaling up its production capabilities to meet the increasing demand for its solar technology.

Furthermore, First Solar’s investment of up to $370 million in a new research and development center in Perrysburg, Ohio highlights its dedication to innovation and technological advancement. This center, expected to be commissioned in 2024, will contribute to the company’s long-term competitiveness and ability to deliver cutting-edge solar solutions.

Overall, First Solar’s entry into the revolving credit facility, along with its ambitious growth plans and strategic investments, positions the company as a key player in the global solar industry. By focusing on financial strength, expansion, and innovation, First Solar aims to secure a stronger position in the market by the end of the decade.