Pageloader -->

CMA CGM Secures $1.1B Government-Backed Loan

14 May 2020

With backing from the French government, CMA CGM has landed a loan facility worth $1.1 billion, giving it more cash on hand as it struggles with the global decline in containerized cargo due to COVID-19.

 

The loan was provided by BNP Paribas, HSBC, and Société Générale, with a guarantee provided through the French government's COVID-19 financial rescue package. The guarantee covers 70 percent of the one-year loan facility.

 

“I would like to thank the French authorities for having introduced this scheme so effectively and quickly,” said Rodolphe Saadé, chairman and CEO 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.”

 

CMA CGM faces significant headwinds due to falling demand. Its forecast calls for a ten percent drop in the first six months of the year; even this sudden fall is more optimistic than Maersk's prediction of a 25 percent drop in volume in the second quarter.

 

CMA CGM's balance sheet was already in less than optimal shape at the start of the year. The company posted a full-year loss in 2019, driven in part by substantial loan interest obligations. It announced a $1.2 billion cost-cutting drive in early 2019, and in November, it agreed on a deal to sell 10 of its port terminals to its joint venture with China Merchants Port Holdings (CMPort). It completed the sale of eight out of 10 in March, including its PSA Lion Terminal in Singapore and is Rotterdam World Gateway terminal in the Netherlands.

 

These asset sales are part of a broader $2.1 billion liquidity plan, which is aimed at reducing the company's $18 billion debt burden (as of year-end 2019).

Comments (0)


Today
8:03am
Hi Jenna! I made a new design, and i wanted to show it to you.
8:03am
It's quite clean and it's inspired from Bulkit.
8:12am
Oh really??! I want to see that.
8:13am
FYI it was done in less than a day.
8:17am
Great to hear it. Just send me the PSD files so i can have a look at it.
8:18am
And if you have a prototype, you can also send me the link to it.

Monday
4:55pm
Hey Jenna, what's up?
4:56pm
Iam coming to LA tomorrow. Interested in having lunch?
5:21pm
Hey mate, it's been a while. Sure I would love to.
5:27pm
Ok. Let's say i pick you up at 12:30 at work, works?
5:43pm
Yup, that works great.
5:44pm
And yeah, don't forget to bring some of my favourite cheese cake.
5:27pm
No worries

Today
2:01pm
Hello Jenna, did you read my proposal?
2:01pm
Didn't hear from you since i sent it.
2:02pm
Hello Milly, Iam really sorry, Iam so busy recently, but i had the time to read it.
2:04pm
And what did you think about it?
2:05pm
Actually it's quite good, there might be some small changes but overall it's great.
2:07pm
I think that i can give it to my boss at this stage.
2:09pm
Crossing fingers then

Details