The CMA CGM Group has secured a €1.05 billion (US$1.14 billion) syndicated loan from a consortium of BNP Paribas, HSBC and Société Générale. This loan is part of France’s state-guaranteed loan scheme established at the end of March in response to the Covid-19 pandemic.
The state guarantees 70% of the loan, which has an initial one-year maturity and an extension option for up to five additional years.
“This new funding further strengthens CMA CGM’s cash position in order to confront uncertainties in the global economy resulting from the health crisis and lockdown measures in a large number of countries,” stated the French liner company.
At this stage, CMA CGM anticipates a limited slowdown in its activity over the near term, with an estimated decrease in market volumes of 10% in the first half of 2020 compared to the first half of 2019.
“This loan also shows the confidence our banking partners have in the CMA CGM Group’s business model and strategy,” commented Rodolphe Saadé, chairman and chief executive officer of the CMA CGM Group. “The current crisis supports our view that globalisation should be rethought, based on more balanced and more environmentally friendly forms of trade.”