4.7 C
Monday, March 8, 2021
Home News CMA CGM gains billion-dollar loan

CMA CGM gains billion-dollar loan

The CMA CGM Group has secured a €1.05 billion (US$1.14 billion) syndicated loan from a consortium of 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," stated the French liner company.

At this stage, CMA CGM 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.

"This loan also shows the confidence our banking partners have in the CMA CGM Group's business model and strategy," commented Rodolphe Saadé, chairman and chief executive officer of the CMA CGM Group. "The current crisis supports our view that globalisation should be rethought, based on more balanced and more environmentally friendly forms of trade."

Latest Posts

SITC profit up 60% in 2020

SITC International continued its profitable streak as container rates spiked in 2020 with the Hong Kong-listed parent of the Chinese intra-Asia carrier SITC Container...

DP World and partners to build Indonesian container port

DP World alongside its partner Caisse de dépôt et placement du Québec (CDPQ), a global investment group, have signed a long-term agreement with Indonesia’s...

PhilaPort breaks ground on new distribution centre

The new PhilaPort Distribution Center will fuel the next phase of development for one of the fastest-growing ports in America, according to a company...

Danes take another step toward methanol as a marine fuel

Danish marine technology company Alfa Laval has announced that it will begin large-scale tests with methanol as a marine fuel with its partners at...

Brazilian port gets green light to handle larger vessels

The Port of Santos has received approval from the Brazilian Navy to receive 366m container vessels with a capacity of 14,000TEU, which are the...