Ex-Im Bank Announces Over $455 Million in Project Financing for First Solar's Exports to Canada
September 2, 2011
(Ex-Im Bank)
PERRYSBURG, OHIO: At a factory tour held today
at the manufacturing facility of First Solar
Inc. in Perrysburg, Ohio, Fred P. Hochberg,
chairman and president of the Export-Import
Bank of the United States (Ex-Im Bank)
announced the Bank's authorization of two
transactions totaling $455.7 million to support
First Solar's exports to solar-energy projects
in Ontario, Canada.
At First Solar's factory in Perrysburg, Ohio,
Ex-Im Bank Chairman Fred P. Hochberg announced
the Bank's authorization of more than $455
million in project financing to support First
Solar's exports of thin-film solar PV modules
to solar-energy projects in Ontario, Canada.
From left to right: Jim Brown, business
president of First Solar Utility Systems;
Chairman Hochberg; Senator Sherrod Brown
(D-OH); and Mike Koralewski, Perrysburg plant
manager and vice president of site operations.
Photo courtesy of First Solar Inc.
Senator Sherrod Brown (D-OH) also participated
in the tour of First Solar's factory, where he
and Chairman Hochberg met with workers and
outlined efforts to create and sustain jobs by
increasing exports.
The transactions constitute Ex-Im's largest
financings in history supporting U.S.
solar-energy exports to any country. The Bank's
support was needed because viable long-term
financing for these projects was not otherwise
available in the commercial marketplace.
In FY 2011, Ex-Im Bank is providing a historic
level of support for U.S. exports related to
solar-energy production. Through September 1,
the Bank has approved approximately $650
million to support sales of U.S. goods and
services to solar-energy projects.
Ex-Im Bank has authorized nearly $573 million
in FY 2011 to support First Solar's exports to
solar-energy projects in India as well as in
Canada. The Bank's total authorizations on
behalf of First Solar are supporting an
estimated 550 jobs at the company's
manufacturing facility in Perrysburg, Ohio.
In two separate transactions, Ex-Im Bank is
providing guarantees supporting commercial
loans to project borrowers for the purchase of
First Solar's and other U.S. exports to a 50-MW
solar-photovoltaic (PV) project in the
townships of Amherstburg, Belmont and Walpole
and a 40-MW solar-PV project in St. Clair.
Electricity produced by the projects will be
sold under multiple 20-year power-purchase
agreements to the Ontario Power Authority under
Ontario's Renewable Energy Standard Offer
Program. The loans will have 18-year repayment
terms.
"U.S. exports provide a bright spot in our
economic recovery, and it is critical that we
encourage more American companies to compete in
the global marketplace," said Chairman
Hochberg. "These two transactions, approved
yesterday by Ex-Im Bank's board of directors,
will boost Ohio's economy, create hundreds of
local jobs and move us closer to President
Obama's goal of doubling U.S. exports by the
end of 2014."
"Ex-Im Bank's support strengthens First Solar's
competitiveness and enables us to sustain U.S.
renewable-energy manufacturing and the jobs
that go with it," said James Brown, president
of First Solar Utility Systems Business Group.
"Financing costs represent a major part of any
solar project, so this support helps accelerate
the deployment of renewable energy worldwide."
Ex-Im Bank will guarantee a $236.7 million loan
($226.1 million in Canadian dollars) to support
First Solar's exports for the construction of a
50-megawatt (MW) solar-energy project in three
townships in Ontario. The project will have
five separate 10-MW systems in three facilities
in Amerherstburg, Belmont and Walpole. The
facilities will be connected to the grid
through the Hydro One, Erie Thames Power and
Haldimand Hydro distribution systems.
Ex-Im Bank will guarantee of a $219 million
loan ($184.3 million in Canadian dollars) to
support First Solar's exports for the
construction of a 40-MW solar-energy project in
St. Clair, Ontario. The plant consists of two
separate systems, the Moore facility and the
Sombra facility, to be located on separate
sites near St. Clair Lake, Ontario. The project
will be connected to the grid through the Hydro
One distribution system.
In both transactions, Ex-Im Bank is
guaranteeing Canadian-dollar-denominated loans
made with the proceeds of two Canadian market
bond issuances with repayment terms of 18
years.
First Solar is also the parent company of First
Solar Development Canada Inc. (FSDCI), which is
the project developer and engineering,
procurement and construction (EPC) contractor.
The transactions are supporting First Solar's
export of these services in addition to its
Series 3 thin-film cadmium telluride solar-PV
modules. Also supported are exports of power
inverters from Xantrex Technology USA Inc., in
Elkhart, Ind., a subsidiary of Schneider
Electric.
In addition to the Ontario projects, Ex-Im Bank
has authorized financing for First Solar's
exports to three projects in India in FY 2011:
$18 million for the 15-MW ACME Solar Technology
project in the state of Gujarat, $15.7 million
for the 5-MW Azure Power project in the state
of Rajasthan, and $84.3 million for the 40-MW
Dahanu Solar Power project (Reliance Power
Ltd.) also in Rajasthan.
First Solar Inc. and its wholly owned
subsidiaries manufacture and sell solar
photovoltaic (PV) modules, and also develop,
design, construct, operate and maintain solar
PV electricity-generating facilities. Founded
in 1999, the company is the world's largest
manufacturer of thin-film solar modules and has
more than 1,900 employees in the United States,
including 1,200 employees at its Perrysburg,
Ohio manufacturing and engineering center. For
more information, visit www.firstsolar.com.
For more information, visit the Bank's website
at www.exim.gov.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.