ATOME signs finance mandate letter with IDB Invest
11 January 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
ATOME signs finance mandate letter with IDB Invest
ATOME Energy (AIM: ATOM), the only pure international green hydrogen and ammonia production company on the London Stock Exchange with current large scale projects in Europe and South America and mobility projects announces the entry into a mandate letter with the multi-lateral IDB Invest.
The Mandate Letter
ATOME has today signed a mandate letter ("the Mandate") with the multilateral investment institution IDB Invest to consider financing the Company's industrial scale green hydrogen and ammonia facility at Villeta, Paraguay. ATOME has already passed IDB Invest's stringent eligibility test for taking on of prospective entities for such consideration.
As part of the Mandate, IDB Invest has agreed to provide certain grant funding towards the costs of the Environmental and Social Impact Assessment ("ESIA"), with the ESIA being a key step of project development and necessary as a matter of course by all funders before Final Investment Decision ("FID").
The Mandate enables IDB Invest to access confidential information and financial resources to conduct all required due diligence, with the project having to conform with the high standards set by IDB Invest's Policy on key matters such as the IDB Invest Environmental and Social Sustainability Policy. Any project financing decision of IDB Invest is contingent on satisfactory results from the above due diligence and approval by the Board of Directors of IDB Invest.
The 120MW Villeta project is widely recognised as a key strategic element in Paraguay's de-carbonisation energy plan and is currently the largest green hydrogen and ammonia production project in South America using 24/7 available baseload power. The projected timescale for Final Investment Decision is in Q2 2023 with commencement of full production in 2025. Green hydrogen and ammonia firmly falls into the category of projects within the IDB Invest sphere of interest to promote and finance.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Olivier Mussat, CEO of ATOME, commented:
"The Inter-American Development Bank (IDB) and IDB Invest, the IDB Group's private-sector arm, provided more than $26 billion in climate financing for Latin America and the Caribbean between 2016 and 2021. We welcome IDB Invest's interest in our 120MW Villeta project and are grateful for their immediate support in the project by providing grant funding for the ESIA .
"IDB Invest's mandate is an important step in the matrix of our funding strategy, complementary to the ongoing work with our Financial Advisor Natixis and reflective of the increasing incoming interest shown by credible substantial parties in funding Villeta at the project level."
For more information, please visit https://www.atomeplc.com or contact:
|
ATOME Energy PLC |
+44 (0) 113 337 2210 |
|
Beaumont Cornish (Nominated Adviser) |
+44 (0) 20 7628 3396 |
|
Liberum (Joint Broker) |
+44 (0) 20 3100 2000 |
|
SP Angel (Joint Broker) |
+44 (0) 20 3490 0470 |
|
finnCap (Joint Broker) |
+44 (0) 20 7220 0500 |
|
Tavistock (Financial PR and IR) |
+44 (0) 20 7920 3150 |
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.
About ATOME
ATOME Energy PLC is an AIM listed company targeting green hydrogen and ammonia production with over 500-megawatt of projects in Paraguay and Iceland, through its subsidiaries ATOME Paraguay, which is wholly owned, and Green Fuel ehf, in which ATOME Energy holds a 75 per cent interest, respectively.
Since its admission to AIM in December 2021 ATOME has signed its first electrolyser purchase order for its hydrogen transport Mobility Division due to start generating revenue in 2023 and signed a large scale 120MW power purchase agreement with ANDE, the state energy company in Paraguay for production of green hydrogen and ammonia targeted to start operations at or around end 2024.
ATOME is in the process of operational planning, sourcing and negotiations with green electricity suppliers, equipment providers and offtake partners, including signed memoranda of understanding and cooperation agreements in place with key parties, to use electricity generated from existing geothermal sources in Iceland and hydroelectric power in Paraguay. All chosen sites are located close to the power and water sources and export facilities to serve significant domestic and then international demand.
The Company has a green-focused Board which is supported by major shareholders including Peter Levine, Trafigura, one of the world's leading commodity and logistics company, and Schroders, a leading fund manager.
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