shipping major CMA CGM has secured a €1.05 billion ($1.1. billion) syndicated
loan, the company announced.
As disclosed, the
loan will be arranged by a consortium of banks BNP Paribas, HSBC France and
Société Générale and it would be 70% percent guaranteed by the French
It is part of France’s State-guaranteed loan scheme
It is part of
France’s State-guaranteed loan scheme established at the end of March in
response to the COVID-19 pandemic. The loan has an initial one-year maturity
and an extension option for up to five additional years.
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.
At this stage, the
group 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
“This loan also
shows the confidence our banking partners have in the CMA CGM Group’s business
model and strategy. In the context of this unprecedented crisis, controlling
the supply chain has become crucial,” said Rodolphe Saadé, Chairman and Chief
Executive Officer of the CMA CGM Group.
The current crisis supports our view that globalization should be
“Thanks to our
expertise, commitment and agility, we have transported several hundred million
masks and medical supplies that are essential in responding to the health
emergency. Looking ahead, we will apply this same know-how to support the
recovery of the French and global economy. The current crisis supports our view
that globalization should be rethought, based on more balanced and more
environmentally friendly forms of trade.”