EQS-News: HMS Bergbau AG further expands its strong mar-ket position in Asia and concludes credit facility with vietnamese Vietcombank

Corporate News from 4 December 2024

HMS Bergbau AG further expands its strong market position in Asia and concludes credit facility with vietnamese Vietcombank 

• HMS Bergbau is one of the few companies outside Vietnam to conclude credit facility with leading vietnamese bank Vietcombank
• New credit facility has a volume in the lower three-digit million USD range
• HMS Bergbau plays an important role in securing the long-term supply of additional raw materials to Asia
• Global demand for coal reaches new highs, driven primarily by emerging and developing countries

Berlin, 4 December 2024: HMS Bergbau AG (ISIN: DE0006061104, WKN: 606110), a leading independent commodity trading and marketing company from Germany, is further expanding its strong market position in Asia. HMS Bergbau has now become one of the few companies outside Vietnam to conclude a comprehensive cooperation agreement with Vietcombank which belongs to one of the largest banks in Vietnam. The new credit line has a USD volume in the lower three-digit million range. The main purpose of this credit line is to provide financial solutions for the company’s global trading business. The planned expansion of trade financing is an important building block for the further growth of HMS Bergbau, in addition to acquiring new customers.

HMS Bergbau and its subsidiaries have been active on the Asian market for more than 20 years. The company has subsidiaries in Indonesia, Singapore and the United Arab Emirates and also has representatives in China, Malaysia, India and Vietnam, among others. In 2023, HMS Bergbau generated sales revenue of EUR 1.3 billion. Over two thirds of this were generated from sales in Asia. Thanks to the recently concluded agreement with Vietcombank, HMS Bergbau has secured additional funding for the stable and reliable supply of raw materials to Asia. This is expected to have a positive impact on the energy and raw materials production landscape especially in Southeast Asia and increase in energy security.

Demand for coal reached a new high in 2023. According to the International Energy Agency (IEA), production rose to 8.5 billion tons, up from around 8 billion tons in the previous year. Demand is primarily driven by emerging and developing countries, with demand from Asia being disproportionately high. For 2024, the IEA expects coal production to rise again to a new record of around 8.7 billion tons. About 90% of added electricity demand during 2023 in Southeast Asia and India was secured from coal alone. Southeast Asia’s ASEAN Center for Energy recently announced that “coal currently outperforms other energy sources in terms of supply security, reliability, affordability and - to some extent - sustainability in ASEAN’s power generation”.

Dennis Schwindt, CEO of HMS Bergbau: “The fact that HMS Bergbau is one of the few companies outside Vietnam to conclude a credit line with Vietcombank, one of the leading banks in Vietnam, is proof of our expertise and know-how. As an internationally active commodities company with a 30-year track record, we are in an excellent position to participate in the global growth of the commodities market and the coal market in particular. HMS continues to support further improvement of economic and environmental efficiencies of thermal power generation to secure reliable and affordable energy supply.”

About HMS Bergbau AG:

HMS Bergbau AG, Berlin, is one of the leading independent commodity trading and marketing companies in Germany. Its core business is the international purchase and sale of raw materials such as coal products, cement, ores and fertilizers. Its customers include well-known international industrial consumers and energy traders and producers, to whom the raw materials are delivered in time and worldwide. HMS Bergbau AG, which is primarily active in Asia, Africa and Europe, also develops first-class raw material reserves.

The company also provides complex transportation solutions for its customers. Founded in 1995, HMS Bergbau AG is listed on the Basic Board of the Frankfurt Stock Exchange.

ABOUT VIETCOMBANK:

Established in 1963, Vietcombank (Joint Stock Commercial Bank for Foreign Trade of Vietnam) is one of the largest commercial banks in Vietnam. With a broad range of financial services and a commitment to innovation and customer satisfaction, Vietcombank has established itself as a leader in the Vietnamese banking sector. The bank offers comprehensive financial solutions to both individual and corporate clients, including retail banking, corporate banking, investment banking, and international banking services. Vietcombank's robust financial performance and strategic initiatives have positioned it as a pivotal player in Vietnam's economic development. The balance sheet most recently totaled around USD 80 billion.