ATOME PLC has secured a $100 million investment from Hy24 for its Villeta green fertilizer project in Paraguay, aiming for a total funding package of $625 million. This funding will help ATOME mitigate risks as it retains management control. The agreement is seen as a major boost toward advancing the project and enhancing food security in the region.
ATOME PLC has made a significant advancement in Paraguay by securing at least $100 million in funding for its Villeta green fertilizer project. This funding comes via a heads of terms agreement with Hy24’s Clean H2 Infra Fund, which aims to lead an equity investment round totaling $115 million, thereby valuing ATOME’s net interest in the project at approximately $60 million.
With ATOME retaining operational control of the Villeta Project, the agreement anticipates a comprehensive funding package of $625 million, predominantly financed through debt, accounting for at least 60% of the total. Analysts from SP Angel noted that this partnership will enhance the overall debt and equity funding processes, highlighting its potential to mitigate near-term funding risks for ATOME.
The preliminary agreement with Hy24 is set to transition into definitive documentation phase in the second quarter, alongside other equity investors, with a final investment decision anticipated before mid-2025. ATOME’s management is optimistic about Hy24’s involvement, believing it will expedite project development in the upcoming months.
CEO Olivier Mussat expressed enthusiasm about partnering with Hy24, citing their expertise as critical to accelerating the project. Additionally, Pierre-Etienne Franc, Hy24’s CEO, emphasized that the Villeta project exemplifies one of South America’s leading green fertilizers initiative, which can greatly boost food security in the region due to Paraguay’s renewable resources and market potential.
ATOME’s $100 million agreement with Hy24 signifies a pivotal moment for the Villeta project, reducing funding risks and enhancing investment prospects. With substantial backing and operational control retained, the project is poised for impactful advances in both financial viability and regional food security. The collaboration underscores the project’s promise and the importance of reliable partnerships in achieving sustainable agricultural development.
Original Source: www.proactiveinvestors.co.uk
