CMA CGM Plans Bond Issue Backed by Air France-KLM Shares

Shipping and logistics group CMA CGM plans to raise approximately EUR325 million (USD380 million) through the issuance of new three-year bonds that may be repaid using its shares in Air France-KLM. The company said it has pledged its entire 8.8% stake in the Air France-KLM Group as security for the bond offering, while retaining the option to repay investors in cash or through a combination of cash and shares.

CMA CGM said it intends to remain a shareholder in Air France-KLM and expressed confidence in the airline group’s management, adding that the structure allows it to retain upside exposure to any future increase in the carrier’s share price.

The Marseille-based shipping giant acquired its 8.8% stake in Air France-KLM in 2022 as part of a broader strategic partnership focused on air cargo operations. That cargo cooperation has since concluded, but CMA CGM has continued to hold the equity stake as part of its diversified transport and logistics investment strategy.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com