ATOME signs finance mandate letter with IDB Invest
ATOME Energy, 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.
ATOME has today signed a mandate letter 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.
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.”
