First Solar Signs Agreements For Sale Of Up To $700M In 2023 IRA Advanced Manufacturing Production Tax Credits
Portfolio Pulse from Benzinga Newsdesk
First Solar, Inc. (FSLR) has entered into agreements to sell up to $700 million in 2023 IRA Advanced Manufacturing Production tax credits to Fiserv, Inc. The deal, facilitated by Citigroup Global Markets, Inc. as the placement agent, is at a rate of $0.96 per $1 of tax credits. This transaction, a first in the solar industry, is expected to enhance First Solar's cash position and balance sheet, allowing for further investment in growth and innovation. The tax credits are derived from the sale of PV solar modules produced by First Solar's US manufacturing facilities. The company plans to invest over $2 billion in new manufacturing facilities and expects to have 14 gigawatts of US solar manufacturing capacity by 2026.
December 27, 2023 | 2:01 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
First Solar's sale of tax credits to Fiserv for up to $700M is expected to strengthen its balance sheet and support investments in R&D and manufacturing capacity expansion. The deal underscores the company's growth trajectory and the marketability of solar tax credits.
The sale of tax credits is likely to have a positive impact on First Solar's short-term financial position by providing liquidity and potentially improving investor sentiment. The transaction demonstrates the company's ability to monetize incentives and invest in strategic growth areas, which could be viewed favorably by the market.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100