Atome has secured $50m (€42.4m) financing from the Green Climate Fund (GCF) to help advance its green fertiliser project in Paraguay.
The board of GCF has approved the concessional finance for the Villeta Project through the International Finance Corporation.
UK-listed Atome said this finance is in addition to the senior debt financing package to be provided by a consortium of international development finance institutions.
As reported in February, Hydrogen infrastructure fund manager Hy24 was planning to invest up to $115m to help Atome advance the project in Paraguay.
Hy24, through its Clean Hydrogen Infrastructure Fund, agreed in principle to become the anchor and lead equity investor in Atome’s 260,000-tonne green fertiliser project in Villeta by investing between $100m and $115m.
The deal also included Hy24 advancing up to $5m to Atome before the final investment decision, subject to certain targets being met.
Olivier Mussat, CEO of Atome, said: “The Green Climate Fund’s board approval of significant concessional finance is a powerful validation of the Villeta Project’s credibility, ambition, and alignment with global sustainability goals. This highly competitive funding, alongside competitive senior debt support from leading multilateral development institutions, will meaningfully lower the overall cost of capital.
“By enhancing the value of the equity component, it importantly enhances the bankability and value of the project equity and will assist in optimising returns for Atome’s shareholders. With daily momentum building on the $630m Villeta Project, we are advancing confidently toward a final investment decision in the coming months.”
Atome is an AIM-listed company targeting green fertiliser production with 445MW of projects in Paraguay and a further pipeline of potential projects in Central America.
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