In its recent rating report, Scope Ratings GmbH affirms the BB+/Stable issuer rating on Pannonia Bio as well as the BBB senior secured debt rating.
Pannonia Bio Zrt. is considering issuing between HUF 30 billion and 50 billion in long term NKP bonds similar to the HUF 15 billion bonds that it issued in 2019, but potentially with longer tenors.
Pannonia Bio awarded BB+ stable credit rating by scope
Pannonia Bio Zrt. is a participant in the National Bank of Hungary’s Bond Programme for Growth Scheme and has been awarded a credit rating of BB+ Stable in relation to this by Scope Ratings.
MACROECONOMIC IMPACT OF PANNONIA BIO IN HUNGARY
Pannonia Bio’s renewable ethanol production integrates the local agricultural communities with investment, innovation and providing the premium animal feed. Pannonia Ethanol's suppliers earn income, generate valued added and create jobs as a result of their sales to Pannonia Ethanol. Therefore, the material inputs needed for producing ethanol increase demand within certain sectors of the economy.
A SUSTAINABLE APPROACH TO CROP PRODUCTION
A recent study by Utrecht University’s Copernicus Institute of Sustainable Development shows that policies for ensuring a sustainable pathway for biofuels in general need to stimulate increases in resource efficiency and productivity in feedstock production as well as addressing all land use. Both of these are goals defined in the European Council’s Conclusions on the 2030 Climate and Energy Policy (European Council 2014) Research by scientists from the University shows that indirect land use change can be mitigated or even prevented by taking a sustainable approach to crop production.
CARBON ABATEMENT COST OF HUNGARIAN ETHANOL
There are limited climate change mitigation options available in the EU transport . A study by Hétfa (2014) finds that renewable ethanol reduces Greenhouse Gas (GHG) emissions significantly reduction effect. The mitigation cost of Hungarian ethanol from corn feedstock is more competitive than alternative renewable fuels in the transport sector.