United Solar completes $1.6 billion raise for Oman polysilicon factory

United Solar announced financial close on a $50 million equity investment from the International Finance Corporation. With this, the company says it has completed the $1.6 billion funding for the polysilicon factory it is currently working to bring online in Oman’s Sohar Free Zone.

A $50 million investment from International Finance Corporation (IFC), the private sector arm of the World Bank Group, rounds off the total $1.6 billion in funding raised to finance United Solar’s polysilicon factory in Oman.

IFC “arranged and mobilized” around 30% of the total capital raised for the project, according to United Solar. It provided around $480 million in long-term debt alongside the $50 million equity investment. A further $400 million of the total comes from debt and working capital facilities from various banks in the Middle East region, and a $260 million investment from Oman’s sovereign wealth fund the Oman Investment Authority.

The factory began operations earlier this year, following a 22-month construction period. It is expected to reach its full capacity of 100,000 metric tonnes per year, sufficient to meet demand for around 40 GW of Pv modules, by the end of 2026.

“Aligned with Oman’s vision, this investment will help create thousands of jobs, attract foreign direct investment, accelerate economic diversification, and strengthen the role of the private sector in driving sustainable growth beyond oil,” said Ulyana Dovbush, IFC’s Regional Industry Manager for the Manufacturing, Agribusiness, and Services in the Middle East, Pakistan, and Afghanistan.

The facility has been built to meet demand for more diverse sources of polysilicon, the production of which is highly concentrated in China and has been subject to concerns over forced labor in the Xinjiang region, leading to import restrictions from the United States and Europe.

“With the backing of the World Bank Group, and on the foundation laid by the Oman Investment Authority, we are delivering world class, fully traceable polysilicon that tier-one manufacturers need — and doing so as an FEOC compliant producer they can rely on as they build resilient, diversified supply chains,” said United Solar Group chief financial officer Binyam Giorgis.

In the United States, Foreign Entity of Concern (FEOC) regulations limit access for many solar products imported from China, and a Section 232 investigation may result in further restrictions specific to polysilicon imports. It is not clear at this point whether imports from Oman or any other country would be exempt from these. Market observers now expect an announcement on the investigation and resulting policy changes to be made in August.