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(Sharecast News) - Atome announced on Thursday that IDB Invest, the private investment arm of the Inter-American Development Bank (IDB), has proposed $200m in debt funding for the company's Villeta Project in Paraguay.
The AIM-traded firm said the funding, subject to contract, came on the back of completion of environmental and social impact studies for the project.
It said the Villeta Project, which aims to produce 260,000 tonnes of green fertiliser annually, had seen strong interest from multilaterals and institutional lenders, leading to a debt portion of funding that was significantly oversubscribed.
Atome noted that the funding terms reflected favourable market conditions, exceeding expectations outlined by the company and analysts.
Construction and operating cost estimates for the Villeta Project remained in line with previous guidance and market expectations.
Casale, the project's EPC contractor, was actively engaging with local Paraguayan providers as part of the project's progression.
The board said the IDB, one of the largest financiers in Latin America, has a AAA credit rating and would bring "decades" of investment expertise to the project.
At 1530 GMT, shares in Atome were up 1.96% at 52p.
Reporting by Josh White for Sharecast.com.
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