ATOME Secures Major Investment for Viletta Green Fertilizer Project in Paraguay

ATOME PLC announced a vital advancement in its Viletta green fertilizer project by securing at least $100 million in funding through an agreement with Hy24’s Clean H2 Infra Fund. This collaboration accelerates project development and reduces funding risks, positioning the project as a leading initiative in South America’s sustainable agriculture sector.

ATOME PLC (AIM:ATOM) has made significant progress in Paraguay with an agreement securing at least $100 million in project funding for its Viletta green fertilizer project. This heads of terms agreement with Hy24, through the Clean H2 Infra Fund, positions Hy24 as the primary equity investor within a funding round that aims for a total of $115 million. The equity investment values ATOME’s net interest in the project at $60 million, while ATOME will continue to oversee the management and operations of the Villeta Project.

The financial plan for Villeta seeks a comprehensive funding package of $625 million, with over 60% expected to be established via debt financing. Analysts from SP Angel underscored that the entrance of a reputable partner like Hy24 will enhance both funding processes and contribute to accelerated project development through their extensive industry experience. This positive update alleviates some near-term funding risks in the eyes of investors.

The preliminary agreement with Hy24 signals the intention to finalize definitive documentation with additional equity investors during the second quarter of 2025. A full investment decision, including commitments for debt financing, is projected to occur before the close of the first half of 2025. Chief Executive Olivier Mussat expressed enthusiasm about partnering with Hy24, emphasizing their proven expertise as critical to expediting the project’s progression toward financial closure.

Hy24 Chief Executive Pierre-Etienne Franc indicated that this collaboration represents Hy24’s initial foray into direct investments in the region, demonstrating a commitment to supporting forward-thinking project developers focusing on cleaner alternatives. He stated that the Villeta project is among South America’s most advanced green fertilizer initiatives, leveraging Paraguay’s unique renewable resources alongside a highly skilled team and strong market potential, which could enhance the region’s food security significantly.

In summary, ATOME PLC’s strategic partnership with Hy24 marks a pivotal moment in the advancement of the Viletta green fertilizer project in Paraguay. The substantial financial backing, combined with Hy24’s expertise, not only mitigates funding risks but also enhances the project’s potential for impactful contributions to regional food security. With plans for definitive agreements and a targeted financial close this year, the initiative is poised for substantial development.

Original Source: www.proactiveinvestors.co.uk