American thin-film solar module maker First Solar, Inc. has secured a debt financing amount of up to $500 million from the US International Development Finance Corporation (DFC), to support its planned 3.3 GW module fab in India.
The actual amount will be released basis negotiations of definitive agreements reached. For the DFC, this loan is its largest single debt financing transaction.
First Solar had announced its decision to expand its module making portfolio with a 3.3 GW annual output fab in India's Tamil Nadu state (see First Solar To Build 3.3 GW Thin Film Solar Fab In India). Most of the output from the proposed plant will be sold within India.
Calling India a Quad ally of the US and a key partner in the Indo-Pacific region, the DFC said the proposed financing will narrow global infrastructure gap, while creating opportunities for American businesses and combating climate crisis.
"This transaction represents another milestone in the United States effort to drive alternative supply chains – and to articulate a vision for climate finance that drives our development mission," said DFC's Acting CEO Dev Jagadesan.
Aiming for 16 GW cumulative nameplate capacity by 2024, First Solar broke ground for its $680 million 3rd manufacturing facility in Ohio, US in August 2021 to sport 3.3 GW annual capacity (see First Solar's 3.3 GW DC Ohio Fab Enters Construction).
The American company has also qualified for the Production Linked Incentive (PLI) tender conducted by the Indian government to support domestic solar manufacturing supply chain set up. However, all of the budget for the scheme was claimed by 3 winners of the competitive process. The government has decided to increase the overall budget of this tender to INR 240 billion, some of which may be coming First Solar's way as a qualified bidder (see Solar PLI Budget Set To Increase).