REG - ATOME PLC - IDB proposal for US$200 million funding for ATOME

AtomeAnnouncement

21/11/2024 07:00

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RNS Number : 0381N  ATOME PLC  21 November 2024

 

For immediate release

21 November 2024

 

ATOME PLC

("ATOME" or the "Company")

 

IDB proposal for US$200 million funding for ATOME

 

 

ATOME (AIM: ATOM), the leading developer of international green fertiliser
projects, announces that IDB Invest, the private investment arm of the
Inter-American Development Bank ("IDB"), has published an updated consultation
on its proposed US$200 million participation subject to contract in the debt
funding for ATOME's Villeta Project ("Villeta" or "the Project") in Paraguay,
including confirmation of the satisfactory completion of environmental and
social impact studies.

 

IDB proposed debt funding

 

ATOME is pleased to announce that the IDB has published on its website, in the
normal course of procedures as part of their investment summary and
environment and social impact reporting, that it is proposing an increased
US$200 million of debt funding to the Company for ATOME's planned 260,000
tonne-per-annum green fertiliser Villeta Project in Paraguay.

 

ATOME welcomes this upgrading which reflects the commercial attractiveness and
importance of the project both to the IDB and Paraguay. As previously
announced, the Company has received similar debt proposals from multilaterals
and institutions, such that the debt portion of the project funding is not
only substantially oversubscribed on the basis of these proposals but taken as
a whole reflects interest levels noticeably better than both the Company's and
market's expectations.

 

In relation to the construction, operating and energy costs of the Villeta
Project, also previously made available through a link within the IDB website,
ATOME confirms that these are broadly in line with current market expectations
as reflected in previous announcements by ATOME and published research by SP
Angel, the Company's house broker.

 

 

Analyst Research

 

The full list of analyst research on ATOME can be found on the Company's
website at https://www.atomeplc.com/investors/analyst-research/
(https://www.atomeplc.com/investors/analyst-research/)

 

 

Project update

 

Casale S.A., ATOME's nominated EPC contractor, is currently in-country having
positive and constructive meetings with local Paraguayan contract and service
providers as a further step in moving forward the EPC process.

 

The satisfactory completion by the IDB of its environmental and social
appraisal due diligence for the Villeta Project marks the achievement of a key
gating item for any development bank funding.

 

Further information from the IDB website on the Villeta project, including
details of IDB's environmental impact and social impact studies, is available
at the weblink below:

 

https://www.idbinvest.org/en/projects/green-hydrogen-ammonia-and-fertilizer-plant-paraguay
(https://www.idbinvest.org/en/projects/green-hydrogen-ammonia-and-fertilizer-plant-paraguay)

 

IDB

 

IDB, one of the largest sources of finance for Latin America, is owned by 48
member countries including the UK and finances its diverse operations through
issuing bonds in international markets where since 1962 its credit rating is
AAA. IDB Invest is the private investment arm of the IDB.

 

 

For more information, please visit https://www.atomeplc.com or contact:

 

 ATOME PLC                                +44 (0) 113 337 2210
 Nikita Levine, Investor Relations
info@atomeplc.com

 Beaumont Cornish (Nominated Adviser)     +44 (0) 20 7628 3396
 Roland Cornish, Michael Cornish
 SP Angel (Broker)                        +44 (0) 20 3490 0470
 Richard Hail, Caroline Rowe
 FTI Consulting (Communications Adviser)  +44 (0) 20 3727 1000

                                        atome@fticonsulting.com
 Elizabeth Adams, Ben Brewerton

 

 

MAR

 

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No
596/2014 which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon publication of this announcement, this inside information is
now considered to be in the public domain. The person who arranged for the
release of this announcement on behalf of the Company was Peter Levine,
Chairman.

 

 

About ATOME

 

ATOME PLC is an AIM listed company targeting green fertiliser production with
445-megawatt of projects in Paraguay and a further pipeline of potential
projects in Central America.

 

The first project is at Villeta in Paraguay. It benefits from a 145MW
renewable power purchase agreement and 30 hectares of land in a tax free zone.
Front End Engineering Design studies have been completed and Heads of Terms
signed with Yara, the leading international fertiliser company for offtake of
all of Villeta's production. The Company is now negotiating the project
finance with a view to closing that and declaring FID before end 2024. There
is a further 300MW of renewable power reserved for ATOME in Paraguay.

 

In Costa Rica, The National Ammonia Corporation S.A. was formed in 2022 with
local partner Cavendish S.A. based in Costa Rica to develop green fertiliser
projects for the region. As well as straddling the Pacific and Atlantic
Oceans, Costa Rica is a democratic Central American country. In agriculture,
Costa Rica is the second largest supplier of pineapples in the world and is in
the top ten banana growers.

 

All power for ATOME is from 100% renewable sources and all chosen sites are
located close to the power and water sources and export facilities to serve
significant domestic and then international demand.

 

The Company has a green-focused Board which is supported by major shareholders
including Peter Levine, Schroders, a leading fund manager, and Baker Hughes, a
global technology company operating in the energy and industry sectors.

 

 

Other information

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

 

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