TIDMATOM
RNS Number : 2857T
ATOME Energy PLC
14 November 2023
14 November 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
ATOME granted Free-Trade Zone for Villeta Project, Paraguay
ATOME Energy (AIM: ATOM) ("ATOME"), the only international green
fertiliser project development company on the London Stock
Exchange, is pleased to announce that its 145MW Villeta Project in
Paraguay has been granted Free-Trade Zone status by Presidential
decree bringing significant financial benefits to the project and
its funders.
Highlights:
-- Free-Trade Zone ("FTZ") status granted by Presidential decree
to ATOME's Villeta Project, Paraguay
-- Only the sixth FTZ granted by Paraguay
-- ATOME will benefit from exemptions on municipal, VAT, and corporate income taxes
-- Clearly demonstrates the Paraguay Government support and
commitment to ATOME's Villeta Project
-- Paraguay country ceiling has been upgraded to BBB- in the latest Fitch Ratings report
Free-Trade Zone
ATOME is pleased to announce that the Presidential decree has
been signed now granting the Villeta Project full FTZ status. This
is only the sixth FTZ in Paraguay and as a result will grant ATOME
with the following benefits which materially enhance the economics
of the Villeta Project:
-- Exemption from VAT on:
o Sales of goods and services from Paraguay to the FTZ
o Import of equipment and services
o Services provided by the concessionaire to FTZ
-- 3% effective corporate income tax ("CIT") on profit derived from domestic sales to Paraguay
-- 0.5% Free Trade Zone tax on revenue from export sales, no CIT
-- Exemption from CIT and/or withholding taxes including on:
o Remittance of profits or dividends by FTZ users to third
countries
o All payments of fees, commissions, interest, and all other
remuneration on all services, including financing, provided from
third party countries to FTZ Users
-- Exemptions from local and municipal taxes and charges
Strong government backing for ATOME's projects
This is an unequivocable demonstration of government support for
ATOME's Villeta Project and its determination to make the project a
success both for ATOME and Paraguay's ambition in being a world
leader in green fertiliser production. This support has been key in
relation to the granting of the FTZ and the Environmental Licence,
having expeditiously passed all necessary inter-governmental
approvals, which are important milestones towards project financing
and construction of the Villeta facility.
Paraguay Economic performance and growth aspirations
Paraguay has political and economic stability and one of the
best performing economies in Latin America, with inflation falling
sharply this year to 3% (as of October 2023) and economic growth
expected by Fitch to rebound by 5.2% in 2023. The latest Fitch
Ratings report affirmed Paraguay's stable outlook at a BB+ credit
rating, one mark short of investment grade, whilst raising the
country ceiling to BBB-.
Peter Levine, Chair, commented:
"Through successive administrations it has been both
consistently crystal clear that Paraguay is open for business and
encourages and supports serious foreign investors and
investments.
"We are greatly honoured by President Peña by his signing of the
decree for the tax-free zone in Villeta and we are grateful for the
support and trust he and his Ministers have given to us in this
important landmark project for the country of Paraguay."
For more information, please visit https://www.atomeplc.com or
contact:
ATOME Energy PLC +44 (0) 113 337 2210
Nikita Levine, Investor Relations info@atomeplc.com
Beaumont Cornish (Nominated Adviser)
Roland Cornish, Michael Cornish +44 (0) 20 7628 3396
Liberum (Joint Broker)
Scott Mathieson, Kane Collings +44 (0) 20 3100 2000
SP Angel (Joint Broker)
Richard Hail, Harry Davies-Ball +44 (0) 20 3490 0470
Cavendish Capital Markets Limited
(Broker)
Simon Hicks, George Dollemore +44 (0) 20 7220 0500
Tavistock (Financial PR and IR) +44 (0) 20 7920 3150
Simon Hudson, Charles Baister, Saskia atome@tavistock.co.uk
Sizen
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. Upon
publication of this announcement, this inside information is now
considered to be in the public domain. 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
fertiliser production with 445-megawatt of projects in Paraguay and
a further pipeline of potential projects in Central America and
Iceland.
Since its admission to AIM in December 2021 ATOME signed a 145MW
power purchase agreement with ANDE, the state energy company in
Paraguay for acquired 30 hectares of land in Villeta, Paraguay for
that facility, mandated Natixis Corporate & Investment Banking
and the multilateral IDB Invest to lead the project funding and
with Front End Engineering and Design studies currently underway
with the international companies Urbas and Casale. ANDE has also
allocated a further 300MW for ATOME's second project subject to
studies.
In Costa Rica, ATOME has a green fertiliser joint venture with
Cavendish, the renewable energy arm of the substantial and
well-established Purdy Group based in Costa Rica and formed The
National Ammonia Corporation S.A. As well as straddling the Pacific
and Atlantic Oceans, Costa Rica is a democratic Central American
country. In agriculture, Costa Rica is the second largest supplier
of pineapples in the world and is in the top ten banana
growers.
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 produce
green ammonia at an industrial scale using electricity generated
from existing geothermal sources in Iceland and hydroelectric power
in Paraguay and Costa Rica. 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, and since May 2023, Baker Hughes, a global
energy technology company operating in the energy and industry
sectors.
-ends-
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END
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