The CMA CGM Group has secured a €1.05 billion loan which is 70% guaranteed by the French state as part of a government scheme set up in response to the Covid-19 pandemic.
The syndicated loan comes from a consortium of three banks: BNP Paribas, HSBC and Société Générale. The French state guarantees 70% of the loan, which has an initial one-year maturity and an extension option for up to five additional years.
The new funding will strengthen CMA CGM’s cash position as it confronts uncertainties in the global economy resulting from the Covid-19 pandemic and the lockdown measures that a large number of countries have implemented to contain the pandemic.
Rodolphe Saadé, chairman and chief executive officer, CMA CGM Group, commented: “I would like to thank the French authorities for having introduced this scheme so effectively and quickly.
“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.”
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.’
Saadé added: “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 globalisation should be rethought, based on more balanced and more environmentally friendly forms of trade.”