ATOME PLC has entered a pivotal agreement with Hy24 for at least $100 million in funding for its Viletta green fertiliser project in Paraguay. The collaboration positions Hy24 as a key equity investor, paving the way for the project’s overall funding of $625 million. This partnership aims to leverage Hy24’s extensive industry insights to propel project development and progress towards a Final Investment Decision by mid-2025.
ATOME PLC has made significant progress in Paraguay by securing a heads of terms agreement with Hy24, which includes a commitment of at least $100 million in project funding for its Viletta green fertiliser initiative. This agreement positions Hy24 as the anchor and lead equity investor in a funding round aimed at securing $115 million, valuing ATOME’s net stake in the project at approximately $60 million. The company will continue to oversee the daily management and operations of the Viletta Project, which aims to receive a total funding package of $625 million, with a minimum of 60% expected to come from debt financing.
Analysts from SP Angel have noted that this partnership with a reputable and well-resourced investor will significantly advance both equity and debt funding efforts while leveraging Hy24’s extensive industry experience to expedite project development. They described the update as a positive development that alleviates some immediate funding concerns. As the market remains cautious ahead of the Final Investment Decision (FID), SP Angel pointed out that ATOME’s implied valuation is consistent with their attributed value of $58.5 million for the Phase 1 Villeta project within a broader net asset value of 200p per share.
The preliminary agreement with Hy24 is anticipated to evolve into definitive documentation along with other equity contributors during the second quarter, leading to a final investment decision—including commitments for debt financing—by the end of the first half of 2025. ATOME’s Chief Executive, Olivier Mussat, expressed enthusiasm for welcoming Hy24 as an anchor investor, highlighting their potential to facilitate the financial closure of the project in the upcoming months.
Mussat underscored the importance of Hy24’s proven industry expertise in accelerating the project’s advancement and reaffirmed the value embedded in ATOME’s strategy of developing shovel-ready projects that promise strong financial returns, market offtake, and significant developmental impacts. Moreover, Pierre-Etienne Franc, Hy24’s Chief Executive, articulated their dedication to supporting viable project developers in providing sustainable alternatives and noted that ATOME’s Villeta project represents one of South America’s most progressive green fertiliser undertakings, fortified by Paraguay’s renewable resources and a highly capable development team.
In conclusion, ATOME’s recent agreement with Hy24 represents a crucial advancement for the Viletta green fertiliser project in Paraguay. The commitment of substantial funding is set to enhance both the project’s viability and its operational management under ATOME. With a significant funding strategy in place, along with Hy24’s substantial industry expertise, the future of the Villeta project appears promising, addressing regional food security while promoting sustainable agricultural practices.
Original Source: www.proactiveinvestors.co.uk
