**Summary**
ATOME PLC, a UK-based low-carbon fertiliser developer, has signed definitive debt agreements for a US$420 million debt package as part of its US$650 million Villeta Project in Paraguay. The project, a 260,000 tonnes-per-year low-carbon fertiliser plant, is expected to be a game-changer for the fertiliser sector, producing fertiliser without relying on fossil fuels. The debt financing was secured from a consortium of lenders, including IDB Invest, IFC, EIB, FMO, and Green Climate Fund, with approximately 25% on concessional terms.
The 15-year debt financing reflects the projects robust economics, alignment with food security and climate goals, and Paraguays investment-grade status. ATOME expects to sign definitive equity agreements within 30 days, with the company providing management services to the project. The Villeta Project benefits from a long-term renewable power supply, a strategic location in a major fertiliser market, and a take-or-pay offtake agreement with Yara International.
Recent global events have highlighted ATOMEs advantageous position as a stable, low-carbon fertiliser producer. The companys green Calcium Ammonium Nitrate product aims to decarbonize the food sector, addressing a significant source of greenhouse gas emissions. ATOMEs Board is supported by major shareholders, including Schroders and Baker Hughes, and the company has a pipeline of potential projects in Central America. The Villeta Project is expected to move into the construction phase soon, with further announcements regarding equity aspects to follow.