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(Sharecast News) - Atome said on Wednesday that IDB Invest had approved up to $200m in debt financing for its flagship Villeta low-carbon fertiliser project in Paraguay, marking another major step toward the project's final investment decision.
The AIM-traded firm said the approval covered senior debt, blended finance and an LC-backed reserve facility, forming part of a planned $630m funding package for the 260,000-tonne-per-year plant.
IDB Invest, the private-sector arm of the Inter-American Development Bank Group, was the first lender formally involved in Villeta and has been working with Atome for more than two years on structuring a bankable financing facility, coordinating lenders and overseeing due diligence.
The financing approval followed the multilateral institution's credit sign-off in September and was conditional only on the finalisation and execution of project and debt documentation, alongside the closing of the project's equity package at financial close.
Atome said the decision represented another important milestone following the recent announcement that the board of the IFC had approved a separate financing package of up to $100m for Villeta.
The company said the progress with both multilaterals strengthened the project's path to final investment decision.
IDB Invest supported private-sector projects across Latin America and the Caribbean, providing financing and advisory services to promote sustainable development.
It manages $22bn in assets and serves more than 400 clients across 25 countries.
At 1255 GMT, shares in Atome were up 1.89% at 54p.
Reporting by Josh White for Sharecast.com.
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