FIRST SOLAR, INC.FSLR
FIRST SOLAR, INC. Debt Disclosure
12. Debt
Our debt arrangements consisted of the following at December 31, 2025 and 2024 (in thousands):
| Balance (USD) | ||||||||||||||||||||
| Loan Agreement | Currency | 2025 | 2024 | |||||||||||||||||
| Revolving Credit Facility | USD | $ | — | $ | — | |||||||||||||||
| India Credit Facility | USD | 373,651 | 464,550 | |||||||||||||||||
| India HSBC Working Capital Facility | INR | 46,719 | 69,097 | |||||||||||||||||
| India Credit Agricole Working Capital Facility | INR | 41,157 | — | |||||||||||||||||
| India JPM Working Capital Facility | INR | 26,140 | 28,490 | |||||||||||||||||
| India Citibank Working Capital Facility | INR | 11,123 | 48,017 | |||||||||||||||||
| Total debt principal | 498,790 | 610,154 | ||||||||||||||||||
| Less: unamortized issuance costs | (218) | (376) | ||||||||||||||||||
| Total debt | 498,572 | 609,778 | ||||||||||||||||||
| Less: current portion | (215,979) | (236,424) | ||||||||||||||||||
| Noncurrent portion | $ | 282,593 | $ | 373,354 | ||||||||||||||||
Revolving Credit Facility
In June 2023, we entered into a credit agreement with several financial institutions as lenders and JPMorgan Chase Bank, N.A. as administrative agent, which provided us with a senior secured credit facility (the “Revolving Credit Facility”) with an aggregate borrowing capacity of $1.0 billion. In February 2026, we entered into a new credit agreement with several financial institutions as lenders and JPMorgan Chase Bank, N.A. as administrative agent and terminated the prior Revolving Credit Facility. This new agreement provides us with a senior unsecured five-year revolving credit facility (the “Credit Facility”) with an aggregate borrowing capacity of $1.5 billion and a sub-limit of $450 million, $150 million of which is currently committed and available for the issuance of letters of credit. Borrowings under the Credit Facility bear interest at a rate per annum equal to, at our option, (i) the Term SOFR plus a margin that ranges between 1.00% to 1.75% or (ii) an alternate base rate as defined in the credit agreement, plus a margin that ranges from 0.00% to 0.75%. The margins are based on our net leverage ratio or, if we elect to switch to a credit ratings-based system after the investment grade ratings trigger date occurs (as defined in the credit agreement), on our public debt rating.
In addition to paying interest on outstanding principal under the Credit Facility, we are required to pay an unused commitment fee that ranges from 0.100% to 0.225% per annum based on the same factors discussed above and the daily unused commitments under the facility. We are also required to pay (i) a letter of credit fee based on the applicable margin for Term SOFR, (ii) letter of credit fronting fees as agreed by us and such issuing lender, and (iii) other customary letter of credit fees.
As of December 31, 2025 and 2024, we had no outstanding debt or letters of credit under our Revolving Credit Facility.
India Credit Facility
In July 2022, FS India Solar Ventures Private Limited (“FSISV”), our indirect wholly-owned subsidiary, entered into a finance agreement (the “India Credit Facility”) with the U.S. International Development Finance Corporation for aggregate borrowing of up to $500.0 million for the development and construction of a solar module manufacturing facility in India. Principal on the India Credit Facility is payable in scheduled semi-annual installments beginning in August 2024 through the facility’s expected maturity in August 2029. The India Credit Facility is guaranteed by First Solar, Inc.
India Credit Agricole Working Capital Facility
In August 2022, FSISV entered into a working capital facility agreement (the “India Credit Agricole Working Capital Facility”) with Credit Agricole Corporate and Investment Bank, for the issuance of letters of credit, bank guarantees, and overdrafts. In 2024, the India Credit Agricole Working Capital Facility was amended to include certain working capital loans, and during 2025, the facility limit was increased to INR 8.5 billion ($94.5 million). The outstanding balance matures in the first quarter of 2026. The India Credit Agricole Working Capital Facility is guaranteed by First Solar, Inc.
India JPM Working Capital Facility
In December 2022, FSISV entered into a working capital facility agreement (the “India JPM Working Capital Facility”) with JPMorgan Chase Bank, N.A. for the issuance of bank guarantees, bonds, and other similar forms of security. In 2023, the India JPM Working Capital Facility was amended to include certain working capital loans of up to INR 6.2 billion ($69.2 million). The outstanding balance matures in the second and fourth quarters of 2026. The India JPM Working Capital Facility is guaranteed by First Solar, Inc.
India HSBC Working Capital Facility
In February 2024, FSISV entered into a working capital facility agreement (the “India HSBC Working Capital Facility”) with the Hongkong and Shanghai Banking Corporation Limited, which provides certain working capital loans of up to INR 8.2 billion ($91.2 million). The outstanding balance matures in the first quarter of 2026. The India HSBC Working Capital Facility is guaranteed by First Solar, Inc.
India Citibank Working Capital Facility
In August 2024, FSISV entered into a working capital facility agreement (the “India Citibank Working Capital Facility”) with Citibank, N.A. In January 2025, the India Citibank Working Capital Facility was amended to provide certain working capital loans of up to INR 6.4 billion ($71.2 million). The outstanding balance matures in the second quarter of 2026. The India Citibank Working Capital Facility is guaranteed by First Solar, Inc.
Interest Rates
As of December 31, 2025, the borrowing rates for our outstanding debt arrangements were as follows:
| Loan Agreement | Interest Rate Description | Interest Rate | ||||||||||||
| India Credit Facility | U.S. Treasury Constant Maturity Yield plus 1.75% | 5.57% | ||||||||||||
India HSBC Working Capital Facility (1) | India Treasury bill rate plus 1.25% | 6.50% | ||||||||||||
India Credit Agricole Working Capital Facility (1) | Overnight Index Swap rate plus 1.14% to 1.23% | 6.53% | ||||||||||||
India JPM Working Capital Facility (1) | India Treasury bill rate plus 1.3% | 6.57% | ||||||||||||
India Citibank Working Capital Facility (1) | India Treasury bill rate plus 1.25% | 6.42% | ||||||||||||
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(1)The weighted-average interest rate for our outstanding short-term debt arrangements was 6.52% as of December 31, 2025.
During the years ended December 31, 2025, 2024, and 2023, we paid $34.6 million, $36.2 million, and $15.0 million, respectively, of interest related to our debt arrangements.
Future Principal Payments
At December 31, 2025, the future principal payments on our long-term debt were due as follows (in thousands):
| Total Debt | ||||||||
| 2026 | $ | 90,899 | ||||||
| 2027 | 90,950 | |||||||
| 2028 | 91,000 | |||||||
| 2029 | 100,802 | |||||||
| Total long-term debt future principal payments | $ | 373,651 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 24, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.