ATOME PLC (AIM:ATOM) has secured $50 million in concessional finance from the Green Climate Fund for its fertiliser project in Villeta, Paraguay, marking a key step in advancing the development.
The funding, which comes via the International Finance Corporation, part of the World Bank Group, is aimed at reducing the project's cost of capital and boosting its competitiveness in the fertiliser market.
It sits alongside a wider package of senior debt financing being assembled by a group of international development finance institutions.
CEO Olivier Mussat said: "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.
"This highly competitive funding, alongside competitive senior debt support from leading multilateral development institutions, will meaningfully lower the overall cost of capital.
"By enhancing the value of the equity component, it importantly enhances the bankability and value of the Project equity and will assist in optimising returns for ATOME's shareholders."
The Green Climate Fund, which has a global investment portfolio of around US$18 billion, said it sees the Villeta project as a significant contribution to decarbonising fertiliser production in South America.
The project is also expected to support food supply chain sustainability, affordability and security across the region.
ATOME, which is listed on London's AIM market, is developing large-scale green fertiliser production facilities powered by renewable energy, with the Villeta project one of its flagship ventures.
"With daily momentum building on the US$630 million Villeta Project, we are advancing confidently toward a Final Investment Decision in the coming months," CEO Mussat said.