United Solar Holding has secured more than $900 million to complete the financing needed for its 100,000-ton polysilicon production facility in Oman. Production is expected to begin in the first quarter of this year.
Omani solar manufacturing company United Solar Holding says it has secured more than $900 million in debt financing to complete the financing needed for its $1.6 billion polysilicon production facility in Oman.
The factory, which will be located in Oman’s Sohar Freezone, will be the Middle East’s largest polysilicon factory, capable of supporting the production of up to 40 GW of solar panels per year once at full capacity.
The 100,000-ton capacity plant is expected to become operational in the first quarter of the year and will be operated by United Solar Polysilicon, a wholly owned subsidiary of United Solar Holding. It will produce fully traceable polysilicon in accordance with leading international standards, including the requirements of the US Foreign Enty of Concern.
The final financing package includes $480 million in term debt from the International Finance Corporation (IFC) and its partners.
IFC’s involvement in the project was confirmed for the first time last August. The bank’s final financing package consists of $200 million from its own account, in addition to a $50 million long-term debt facility from the OPEC Fund for International Development and $230 million committed by Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Commercial Bank of Dubai and First Abu Dhabi Bank.
United Solar has also received more than $400 million in term debt and working capital facilities from local commercial banks, including Oman Arab Bank, which has signed an agreement $220 million financing agreement for the project in December.
The company’s largest shareholder is Future Fund Oman, an investment arm of the Oman Investment Authority (OIA). The financing mechanism originally supported the project appropriately $156 millionbut the investment has since increased to approximately $260 million.
“With the support of OIA and IFC, we are building the infrastructure needed to strengthen the global solar supply chain and ensure manufacturers have reliable access to high-quality, traceable polysilicon that meets the highest standards in the world,” said Sam Zhang, Founder and Chairman of United Solar.
Ashruf Megahed, IFC Regional Industry Head for Manufacturing, Agribusiness and Services in the Middle East and Central Asia, added that the bank is committed to strengthening Oman’s export capacity and diversifying the global polysilicon supply chain, which is currently dominated by China.
“By strengthening industrial capabilities, the project will significantly expand polysilicon exports, contribute to the growth of global energy production and support Oman’s long-term economic diversification and industrial transformation,” Megahed said.
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