ATOME secures $420 million in debt finance for Villeta project

UK-listed project developer ATOME signed the definitive debt agreements with its lenders at the annual meeting of the Inter-American Development Bank (IDB) Group in Asuncion, Paraguay, on 12th March. The debt finance is conditional on ATOME securing the outstanding equity finance for the $650 million project within the next 30 days.

The definitive debt agreements, which place Villeta on a fast track to financial close, were signed by James Spalding, the president of subsidiary company ATOME Paraguay S.A.E (ProjectCo), and the following consortium of five lenders:

1. Inter-American Investment Corporation (IDB Invest), the private sector arm of IDB Group
2. International Finance Corporation (IFC), part of the World Bank Group
3. European Investment Bank (EIB), the lending arm of the European Union
4. Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), the majority state-owned Netherlands development bank
5. Green Climate Fund (GCF), a fund created under the United Nations Framework Convention on Climate Change (UNFCCC).

Peter Levine, ATOME’s chair, was present to witness the signing.

Next steps

The documentation for the Villeta project’s remaining $244 million in equity funding is “in the final stage of negotiations”, according to ATOME. The parent company will provide management services to ProjectCo as part of the equity arrangements. These are expected to include the provision of (and remuneration for) the positions of chair, CEO and project director, as well as other project personnel and selected services.

“Whilst final terms are still being negotiated, the resolution of the equity documentation is projected to be before the expiration of the said 30-day period, with ATOME and its partners preparing to embark on the construction phase as soon as possible,” ATOME said in a statement.

Peter Levine, ATOME’s chair, said: “We are sincerely grateful to the Lenders for their tremendous support for this flagship project which ATOME has originated, developed, and is expected by them to continue to manage on behalf of the lending and equity funders.”

He added: “This is a significant, world-leading project with clear environmental benefits. Villeta will enable fertiliser to be produced at industrial scale without reliance on fossil fuels, supported by a stable, long-term renewable power supply, which we believe will be a game-changer for the fertiliser sector, particularly in the increasing important South American region.”