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(Sharecast News) - Atome announced a major boost for its flagship Villeta green fertiliser project in Paraguay on Thursday, with the Green Climate Fund approving $50m in concessional finance to support its development.
The AIM-traded firm said the funding would be channelled through the International Finance Corporation, part of the World Bank, which is acting as the accredited entity.
It said the concessional finance would be provided alongside a broader senior debt package from a consortium of international development finance institutions.
The funds were expected to significantly reduce the project's cost of capital, bolstering its competitiveness and long-term viability.
Atome said the Green Climate Fund, the world's largest dedicated climate fund with a portfolio of around $18bn, described the project as a large-scale, catalytic step toward decarbonising fertiliser production in South America.
It was also expected to contribute to the sustainability, affordability and security of the region's food supply chain.
Atome CEO Olivier Mussat welcomed the funding as a strong endorsement of the project's strategic importance.
"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," he said.
He added that the concessional funding, in tandem with competitive senior debt, "will meaningfully lower the overall cost of capital" and enhance the bankability and equity value of the $630m project.
"With daily momentum building on the Villeta Project, we are advancing confidently toward a final investment decision in the coming months," he said.
At 1145 BST, shares in Atome were up 4.67% at 56p.
Reporting by Josh White for Sharecast.com.
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