ATOME PLC (AIM:ATOM) has secured $420 million in debt financing for its flagship Villeta green fertiliser project, marking a significant step towards full project delivery.
In an interview with Proactive this week, chief executive Olivier Mussat outlined how the funding strengthens returns, validates the project’s economics and underscores institutional backing.
He also set out ATOME’s strategy to capitalise on volatile global fertiliser markets while scaling a replicable low-carbon production model.
Proactive: I’m joined by ATOME CEO Olivier Mussat. Olivier, very good to speak with you. You have secured $420 million in debt for Villeta. What does this mean for the project and investor returns?
Olivier Mussat: Quite key, actually. It has been talked about for quite a while, the discussions that were ongoing. Finally, we have signed all of the documents relating to refinancing. The financing is with the European Investment Bank, FMO, the Dutch state-owned development finance institution, the Inter-American Development Bank, IFC from the World Bank Group and the Green Climate Fund.
We went through a very thorough process and the institutions saw the quality of the project, the economic case and the bankability of it, as well as its impact on food security and climate. It shows that ATOME continues to bring in tier-one partners and is able to deliver projects much larger than the company’s current market capitalisation.
They have provided long-term debt finance on very competitive terms, which helps the project and improves returns for shareholders and equity partners. Leverage into a project increases equity returns.
Proactive: The Villeta project will make fertiliser without fossil fuels. How does that give ATOME an edge in the market?
Olivier Mussat: It is about being in the right place at the right time. ATOME has long-term, low-cost power supply. That allows the company to deliver fertiliser at a cost that is cheaper than importing it from Russia or the Middle East.
From an offtake perspective, ATOME announced last year that Yara, one of the largest fertiliser companies in the world, will take 100% of production through a long-term agreement. That de-risks the project while still allowing upside.
ATOME will be producing low-cost fertiliser without hydrocarbons. The company can compete with traditional fertilizer production while also benefiting from the green premium and potential carbon border mechanisms in markets such as Europe.
Proactive: You mentioned rising fertiliser prices and the possibility of replacing imports from Russia or the Middle East. What do current conflicts mean for the fertiliser sector?