CMA CGM obtained a 1.05bn ($1.14bn) bank loan backed by the French government to help it weather an expected 10% drop in its business due to the impacts of the coronavirus, the major liner company said on Wednesday.

France is guaranteeing 70% of the loan, which is extended by major local lenders BNP Paribas and Societe Generale, as well as HSBC, a global bank.

The financing is part of the country/s state-guaranteed loan scheme established at the end of March in response to the pandemic. The loan matures in just one year, but there is an option to extend it for up to five additional ones.

CMA CGM published no further details on its terms.

“I would like to thank the French authorities for having introduced this scheme so effectively and quickly,” said in a statement Rodolphe Saade, chairman and chief executive officer 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."

The loan may go some way towards reassuring shipping players concerned about the effect of a global economic slump on major liner companies like CMA CGM. Several containership firms have warned recently that liners may seek to renegotiate charters as their business shrinks in the pandemic.

CMA CGM said in its 13 May statement it expected business to shrink by about a tenth in the short term.

“At this stage, the group 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,” the Marseilles-based company said.

The new funding would “further strengthen CMA CGM’s cash position in order to confront uncertainties.”

Saade warned last month that the coronavirus pandemic will mean a complete overhaul of supply chains.

"It will impact world economic flows and will necessitate that we all rethink our supply chain models," he said in a video message. They would need to be redesigned with more resilience and "be able to quickly adapt to sharp fluctuations in supply and demand," he said.