ATOME PLC has secured at least $100 million in funding for its Viletta green fertiliser project through an agreement with Hy24. This investment supports ATOME’s management of the project, which is projected to require a total funding of $625 million. Analysts view this partnership as a positive development that mitigates funding risks.
ATOME PLC (AIM:ATOM) has made a significant advancement in Paraguay by securing at least $100 million in project funding for its Viletta green fertiliser initiative. This development stems from a heads of terms agreement with Hy24, which will act as the lead equity investor in a funding round aimed at generating $115 million, with a minimum commitment of $100 million from the Clean H2 Infra Fund.
The agreement values ATOME’s net interest in the Viletta project at $60 million, while ATOME will retain operational management of the project. Ultimately, the funding package for Viletta is projected to reach $625 million, with at least 60% of this amount derived from debt financing, further strengthening the project’s financial structure.
Analysts at SP Angel consider this partnership a positive development that alleviates some of the immediate funding risks. They noted that the cautious market sentiment surrounding the final investment decision (FID) is counterbalanced by ATOME’s implied valuation being consistent with their appraised value for Phase 1 of the Viletta project.
Looking forward, the preliminary agreement with Hy24 is anticipated to evolve into definitive documentation in the second quarter of the year, along with commitments from other equity investors. A final investment decision, encompassing debt financing commitments, is expected prior to the end of the first half of 2025.
Chief Executive Olivier Mussat expressed enthusiasm regarding the collaboration with Hy24, highlighting their expertise as a significant asset for accelerating project development. He stated, “The Hy24 team has demonstrated deep industry expertise that will accelerate our project development.”
Additionally, Pierre-Etienne Franc, CEO of Hy24, emphasized their commitment to fostering promising project developers that offer cleaner alternatives. He remarked, “ATOME’s Villeta project stands as one of South America’s most advanced green fertiliser initiatives, driven by Paraguay’s exceptional renewable resources.”
In summary, ATOME PLC has successfully secured substantial funding for its Viletta green fertiliser project, affirming its commitment to sustainable agriculture in Paraguay. The partnership with Hy24 marks a pivotal moment in advancing the project, indicating future growth and financial stability. The anticipated finalization of the funding agreements and the final investment decision later this year positions ATOME favorably in the green energy sector.
Original Source: www.proactiveinvestors.co.uk
