REG - ATOME PLC - Positive Project Finance Progress

AtomeAnnouncement

23/09/2024 07:00

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RNS Number : 1269F  ATOME PLC  23 September 2024

23 September 2024

 

ATOME PLC

("ATOME", "the Company", or "the Group")

 

Positive Progress on Villeta Project Finance Process

 

 

 

ATOME (AIM: ATOM), the leading developer of international green fertiliser
projects, is pleased to provide an update on the project finance processes
for its 145MW Villeta Project in Paraguay ("Villeta" or "the Project").

 

 

Highlights:

 

·      Written non-binding offers now received for equity and debt
funding

·      Equity proposals for Villeta also include ATOME's wider portfolio
of projects

·      Indicative debt proposals substantially oversubscribed

 

 

Villeta Project Finance

 

ATOME is pleased to report material progress with the ongoing project finance
processes for Villeta which is being conducted by the Company's international
financial advisers. After substantive discussions and presentations, an
encouraging number of written detailed non-binding offers ("NBOs") have now
been received in respect of each of the equity and debt project finance
portions from reputable international entities including multi-laterals,
commercial banks, strategic investors and specialised investment funds.

 

The debt portion of the funding, as anticipated, is substantially
oversubscribed on the basis of these NBOs. Furthermore, there has been a
positive response to the equity portion from credible, international parties
with equity funding interest being shown in ATOME's wider portfolio of
projects, alongside Villeta.

 

ATOME is delighted by the extent and seriousness of the NBOs received and
looks forward to progressing and finalising the funding as soon as possible,
with the aim of commencing on-site work before the end of this year.

 

The next stage is to analyse and shortlist the proposals before moving to
mandate the lead debt arrangers and select the preferred equity partners. As
is normal in such processes, the Company reminds shareholders that there is no
certainty or guarantee as to timing at this stage nor that any of the
proposals received will ultimately progress to completion.

 

In the meantime, the Company's preferred EPC (Engineering, Procurement, and
Construction) contractors are working on final costings for the construction
of the Villeta Project which are expected to be received next month. The
Company's estimate of these costings has, however, already been prudently
taken into account and reflected in the NBOs received.

 

 

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

 

 

 

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.

 

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.

 

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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