According to Reuters, French shipping group CMA CGM is planning to raise around €325 million ($378.3 million) through the issuance of a three-year exchangeable bond, which could be reimbursed using its shares in Air France-KLM.
CMA CGM said the bond may be repaid either in cash, through Air France-KLM shares, or through a combination of both, giving the group flexibility at maturity.
The exchange option would apply at a premium of 30% to 35% over the airline group’s average share price on December 9, the company added.
Following the announcement, Air France-KLM shares fell by around 9% in early trading, a move attributed to investors hedging potential equity exposure linked to the bond.
ODDO BHF analyst Yan Derocles noted that prospective bond buyers were likely selling the airline’s shares in anticipation of possible delivery in three years, Reuters reported.
CMA CGM currently holds 8.8% of Air France-KLM’s capital, having become a shareholder in 2022 when the two groups launched an air freight partnership. That cargo partnership was scrapped in early 2024, and a lock-up period on CMA CGM’s stake expired in February 2025.
Air France-KLM said the premium attached to the potential share exchange reflects CMA CGM’s confidence in the airline group’s long-term strategy and outlook. The airline group also confirmed that the transaction would not affect its capital structure at this stage.
CMA CGM, the world’s third-largest container shipping line, has continued to expand beyond ocean transport in recent years.
The group has invested heavily in its air cargo operations, strengthened its land logistics footprint through CEVA Logistics, and diversified further by acquiring media assets and investing in major French companies, including supermarket retailer Carrefour.
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