French shipping giant CMA CGM is set to raise approximately €325 million ($378.3 million) by issuing a three-year exchangeable bond. This bond offers CMA CGM flexibility at maturity, as it can be repaid in cash, through its stake in Air France-KLM shares, or a combination of both.

The exchange option is structured with a premium of 30% to 35% over Air France-KLM’s average share price as of December 9th. Following the announcement, Air France-KLM shares experienced a decline of around 9% in early trading, a reaction attributed by analysts to investors hedging potential equity exposure associated with the bond. ODDO BHF analyst Yan Derocles suggested that potential bond purchasers may be selling Air France-KLM shares in anticipation of a possible share delivery in three years.

CMA CGM currently holds an 8.8% stake in Air France-KLM, acquired in 2022 as part of an air freight partnership. Although this cargo partnership was discontinued in early 2024, a lock-up period on CMA CGM’s shareholding expired in February 2025.

Air France-KLM views the premium for the potential share exchange as a testament to CMA CGM’s confidence in the airline group’s long-term strategy and prospects. The airline group also confirmed that this transaction will not impact its capital structure at this time.

As the world’s third-largest container shipping line, CMA CGM has been actively diversifying beyond its core ocean transport business. The group has significantly invested in its air cargo operations, expanded its land logistics capabilities through CEVA Logistics, and broadened its portfolio through acquisitions of media assets and investments in prominent French companies, including the supermarket retailer Carrefour.

CMA CGM plans exchangeable bond backed by Air France-KLM stake