en.Wedoany.com Report on Mar 23rd, BID Invest announced it has coordinated a $420 million debt financing package to support the green hydrogen fertilizer project being developed by Atome Paraguay in Villeta, Paraguay. With an estimated total investment of approximately $650 million, this project will become Paraguay's first green hydrogen-based fertilizer production and export facility and one of the largest private investments in the country's history.

BID Invest's participation amounts to about $156 million, comprising a $95 million senior loan, a $31 million standby letter of credit facility, and a $30 million concessional loan from the Canadian Zero Emission Netting and Climate Resilience Acceleration Fund. The institution also acted as the global financial coordinator and the largest single lender for this financing.

The financing package was structured with advisory from Natixis Corporate & Investment Banking. Other participants include the International Finance Corporation (IFC), the European Investment Bank (EIB), the Dutch entrepreneurial development bank (FMO), and the Green Climate Fund (GCF).

The plant will utilize Paraguay's 100% hydroelectric resources to produce green hydrogen, which will then be converted into fertilizer for regional export. With an estimated annual production of approximately 262,460 tons, about 90% will be exported to Paraguay, Argentina, and Brazil to strengthen the agricultural value chains in these regions.

Atome describes the Villeta project as its flagship initiative in Paraguay. Announced in 2022 and linked to a 145 MW power supply, it aims to achieve industrial-scale low-carbon fertilizer production. The company stated that the facility is expected to be operational by 2028, having completed the FEED technical design study, signed the EPC contract, and secured offtake agreements for 100% of its production.