ATOME PLC (AIM:ATOM) shares rose 5% after the company secured $50 million in concessional finance from the Green Climate Fund to support its green fertiliser project in Villeta, Paraguay.
The funding, channelled through the International Finance Corporation, aims to lower the project's capital costs and improve its financial viability.
It complements a broader senior debt package being prepared by global development institutions.
Chief executive Olivier Mussat described the backing as “a powerful validation” of the project’s strategic importance and sustainability goals.
He said the reduced financing costs would strengthen project bankability and improve potential returns for shareholders.
The Villeta facility, powered by renewable energy, is a cornerstone of ATOME’s green fertiliser strategy and is expected to support long-term food security and decarbonisation in South America.
With a final investment decision targeted in the coming months, the $630 million project is gaining momentum, according to the company.
Stifel, in a note to clients, echoed Mussat's comments: "This is further important validation for the project and will help to lower the cost of capital, which has the potential to materially improve returns for shareholders."
It noted that, based on its analysis, a half a percentage point reduction in the cost of debt would increase its Villeta valuation by around 14% and the overall net asset value by over 5%.
Stifel repeated its 'buy' advice and 130p a share NAV for the business. Mid-afternoon on Thursday, stock was changing hands for 56p, up 2.5p.