ATOME Announces Landmark $650m Project Financing, Shares Surge

ATOME (ATOM.L), a pioneering low-carbon fertiliser developer, saw its shares jump 21% following the announcement of definitive debt agreements for its Villeta Project in Paraguay.

This significant milestone unlocks the US$650 million needed for the construction of a 260,000-tonne-per-year low-carbon fertiliser plant.

The company has secured a total debt package of US$420 million with the signing of the definitive debt financing documents. The agreements were formalized during the Inter-American Development Bank Group’s (IDB Group) Annual Meetings in Asuncion, Paraguay.

The lender consortium includes Inter-American Investment Corporation (IDB Invest), International Finance Corporation (IFC), European Investment Bank (EIB), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V (FMO), and Green Climate Fund (GCF).

The debt structure features fifteen-year financing on competitive terms, reflecting the project’s strong economics, alignment with sustainability goals, and Paraguay’s investment-grade status. Approximately 25% of the debt is on concessional terms, which significantly improves the overall cost of capital.

The next step involves finalizing the equity documentation, which is expected within 30 days. ATOME and its partners are preparing to commence the construction phase as soon as possible after the equity agreements are settled. These documents will outline the financial contributions, governance, and management of the US$244 million equity funding.

ATOME is expected to provide management services to the project, including key personnel such as the Chair, CEO, and Project Director. This will be on a remunerative basis, further enhancing ATOME’s revenue streams.

Recent global events have underscored the importance of ATOME’s project. Villeta will produce fertiliser without relying on fossil fuels, benefiting from a stable, long-term renewable power supply. The plant is strategically located in a major fertiliser market and has a long-term take-or-pay offtake agreement with Yara International, featuring price-protection mechanisms and upside potential.

Peter Levine, Chair of ATOME PLC, stated, “We are sincerely grateful to the Lenders for their tremendous support for this flagship project which ATOME has originated, developed, and is expected by them to continue to manage on behalf of the lending and equity funders.”

He added, “This is a significant, world-leading project with clear environmental benefits. Villeta will enable fertiliser to be produced at industrial scale without reliance on fossil fuels, supported by a stable, long-term renewable power supply, which we believe will be a game-changer for the fertiliser sector, particularly in the increasing important South American region.”