CMA CGM obtains loan of 1.05 billion euros backed by French government

CMA CGM obtained a loan of 1.05 billion euros (US$1.1 billion), with the French government backing 70% of it, so as to reinforce its cash flow during the new coronavirus pandemic.  The loan, guaranteed by a consortium of banks formed by BNP Paribas, HSBC and Société Générale, has an initial deadline of one year and an option to extend it for up to five years, said CMA CGM in a public statement on Wednesday, May 13.  The French government is offering to be the guarantor for billions of euros in loans so as to support French companies during the crisis.

“CMA CGM’s cash-flow is further strengthened by this loan so that we can face uncertainties in the global economy which are consequences of the current health crisis,” said the group. CMA CGM said it expects a 10% drop in throughput for the first half of 2020 when compared to the previous year. The company had a net loss last year and has been trying to reduce its debt after the acquisition of Swiss CEVA Logistics with the aim of expanding its presence in non-maritime transport.

Source: Reuters

Sharing is caring!