The CMA CGM Group has secured a US$1.14 (€1.05 billion) syndicated loan from BNP Paribas, HSBC and Société Générale to strengthen its position amid the COVID-19 pandemic.
In a statement, CMA CGM, the fourth biggest container shipping line in the world, said the loan is part of France’s State-guaranteed loan scheme established at the end of March in response to the COVID-19 pandemic.
As part of the scheme, the French state will guarantee 70% of the loan, which has an initial one-year maturity and an extension option for up to five additional years.
In addition, CMA CGM said it anticipates a slowdown in business in the near term and estimates its market volume will drop by as much as 10% in the first half of 2020 compared with 2019.
Rudolphe Saade, Chairman and Chief Executive Officer, CMA CGM said: “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.
“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.”
