CMA CGM Makes Progress on NOL Loan


Since completing the acquisition of Singapore-based Neptune Orient Lines (NOL) in June, 2016, CMA CGM has already paid back half of the US$1.6 billion it borrowed to finance the deal, reported gCaptain.

The world’s third largest shipping line has until August, 2017 to completely repay the loan, which was sought to cover part of the $2.4 billion deal to buy NOL, announced last December.

Much of the repayment has been reported to be a result of asset sales from the combined company, which has now become the market leader of trans-Pacific shipping route.

An 18-month plan to save over $1 billion from cost reductions, a sale-and-leaseback deal for containers and a securitisation programme have also played their part in covering the cost of the loan.

CMA CGM has already announced it is looking for further merger opportunities, following its purchase of NOL, as the industry looks to consolidate to tackle oversupply.

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