Omani solar manufacturing company United Solar Holding says it has secured more than $900 million in debt financing to complete the funding required for its $1.6 billion polysilicon manufacturing facility in Oman.
The factory, to be located in Oman’s Sohar Freezone, will be the Middle East’s largest polysilicon facility, capable of supporting the production of up to 40 GW of solar modules annually once at full capacity.
Scheduled to begin operations within the first quarter of year, the 100,000 MT plant will be operated by United Solar Polysilicon, a wholly-owned subsidiary of United Solar Holding. It will produce fully traceable polysilicon in line with leading international standards, including US Foreign Entity of Concern requirements.
The final financing package includes $480 million in term debt from the International Finance Corporation (IFC) and its partner backs.
IFC’s involvement in the project was first confirmed last August. The bank's final funding package breaks down into $200 million from its own account, alongside a long-term debt facility of $50 million from the OPEC Fund for International Development and $230 million committed from 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 signed a $220 million financing agreement for the project in December.
The company’s largest shareholder is Future Fund Oman, an investment arm belonging to the Oman Investment Authority (OIA). The financing mechanism originally backed the project to the tune of $156 million, but its investment has since increased to around $260 million.
“With OIA and IFC's support, 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 world's most rigorous standards,” commented United Solar Founder and Chairman Sam Zhang.
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 reinforcing 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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