US’ First Solar Raises Fresh Finance

• First Solar has secured a revolving credit facility of $1 billion from a host of lenders
• The money will help it maintain liquidity and manage growth as it undertakes expansion
• By 2026, it targets to expand its annual production capacity to exceed 20 GW DC

US cadmium tellurium (CdTe) thin film solar module manufacturer First Solar has raised $1 billion in a 5-year revolving credit and guarantee facility, led by JP Morgan Chase, to maintain liquidity as it expands annual production capacity to over 20 GW DC by 2026.

"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," explained First Solar CEO Mark Widmar. "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."

The company plans to add close to 8 GW DC of new production capacity between H2/2023 and 2026. A new 3.4 GW DC fab in India is planned to come online in H2/2023, followed by a new 3.5 GW DC factory in Alabama, US in late-2024. The company's current Ohio fab is also adding 900 MW DC by 2026.

First Solar's is also investing up to $370 million in a new research and development center in Perrysburg, Ohio. This is scheduled to come online in 2024.

It is also exploring perovskite solar technology having acquired Sweden's Evolar in May 2023 with a view to explore tandem devices (see US Solar Panel Maker Expands To Europe For Next Gen Tech).

The $1 billion facility also had other banks participating including 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, announced First Solar.