CMA CGM Group Secures EUR 1.05 Billion Loan Backed by French Government

May 13, 2020 - The CMA CGM Group [on May 12] announced that it has secured a EUR 1.05 billion syndicated loan from a consortium of three banks: BNP Paribas, HSBC and Société Générale. This loan is part of France's State-guaranteed loan scheme established at the end of March in response to the COVID-19 pandemic.

The State guarantees 70% of the loan, which has an initial one-year maturity and an extension option for up to five additional years. This new funding further 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.

As soon as the first wave of the epidemic hit China, the Group implemented several measures, including:

  • Protecting the health and ensuring the safety of its employees, both on land and at sea;
  • Reorganizing and adjusting maritime services to the needs of its customers;
  • Stepping up the cost reduction program for both maritime operations (ports and vessels) and logistics operations (adapting warehouse activities).

In addition, the CMA CGM Group is using its expertise to transport essential goods, particularly medical and pharmaceutical products, thereby helping to combat the health crisis in France and around the world.

“I would like to thank the French authorities for having introduced this scheme so effectively and quickly,” said Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group. “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,” Saadé concluded.