ATOME PLC (AIM: ATOM), shares jumped about 20% to 59.87p in afternoon trading after the company secured $420 million in debt financing for its planned fertiliser plant in Villeta.
Highlights:
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Definitive debt financing documents signed for the entire debt package of US$420 million |
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Signing of the definitive equity agreements projected to follow within 30 days |
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Recent world events highlight ATOME’s beneficial position as a stable producer of low-carbon fertiliser, independent of fossil fuels |
The 15-year financing package was signed on 12 March during the annual meetings of the Inter-American Development Bank Group in Asuncion and has been provided by a consortium of five development finance institutions.
Around 25% of the debt has been arranged on concessional terms, meaning below-market interest rates, which ATOME said will lower the project’s cost of capital and improve overall returns.
The Villeta facility, expected to cost around $650 million, is designed to produce 260,000 tonnes of low-carbon fertiliser per year using renewable energy rather than fossil fuels. The company says this would make it the largest plant of its kind globally.
All of the plant’s output is already committed under a long-term take-or-pay agreement with Yara International, which is contractually obligated to purchase the entire production volume at pre-agreed prices.
The remaining $244 million required for the project is expected to come from equity funding, with definitive agreements anticipated within the next 30 days.
ATOME will also provide management services to the project company, including filling the roles of chair, chief executive and project director on a paid basis.
Chair Peter Levine described the development as “a game-changer for the fertiliser sector,” particularly in South America. The company added that recent geopolitical tensions have highlighted the strategic importance of fertiliser production that is not reliant on fossil fuels, especially amid concerns over food security and volatile energy prices.
