Atome PLC on Thursday said the Inter-American Development Bank proposed $200 million worth of debt funding for a project in Paraguay.

IDB Invest, the investment arm of the bank, published an updated consultation on its participation in the debt funding for Atome’s Villeta project.

Atome plans to produce 260,000 tonnes a year of green fertiliser as part of the Villeta project.

The Villeta project benefits from a 145 megawatt renewable power purchase agreement and 30 hectares of land in a tax-free zone. Atome is negotiating the project finance with a view to declaring a final investment decision before the end of the year.

The IDB’s funding is subject to contract, including confirmation of the completion of environmental and social impact studies.

Atome said IDB’s $200 million proposal ‘reflects the commercial attractiveness and importance of the project both to the IDB and Paraguay’.

As previously announced, Atome confirmed it had received similar debt proposals from other multilaterals and institutions, so the debt portion of the project funding is ‘substantially oversubscribed’.

It said this ‘reflects interest levels noticeably better than both the company’s and market’s expectations’.

Atome also confirmed that construction, operating and energy costs of the project are broadly in line with market expectations.

Shares in Atome rose 2.5% to 52.25 pence in London on Thursday afternoon.

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