Key Moments
- Stellantis priced a multi-tranche hybrid bond offering totaling 5 billion euros equivalent, executed on Tuesday.
- The issuance follows 22.2 billion euros in impairments tied to a pullback in the automaker’s electric-vehicle strategy.
- The transaction is expected to settle on March 16 and is intended to support Stellantis’ capital structure and liquidity.
Hybrid Bond Issuance Details
Stellantis announced in Milan that it has priced a multi-tranche hybrid bond transaction raising the equivalent of 5 billion euros ($5.8 billion). The deal, conducted in the capital markets only weeks after the company disclosed multi-billion euro charges linked to its electric vehicle strategy overhaul, consists of several perpetual subordinated instruments.
The automaker had previously outlined plans to issue up to 5 billion euros in non-convertible subordinated perpetual hybrid bonds as part of a broader effort to maintain a solid balance sheet and ensure adequate liquidity following its strategic shift.
Structure and Terms of the Offer
According to Stellantis, the offering, executed on Tuesday, is split into three distinct tranches with varying currencies, coupons, and non-call periods.
| Tranche | Size | Currency | Instrument Type | Non-call Period | Coupon |
|---|---|---|---|---|---|
| Tranche 1 | 2.2 billion | euros | Perpetual fixed-rate resettable notes | 5.25 years | 6.25% |
| Tranche 2 | 1.8 billion | euros | Perpetual notes | 8 years | 6.875% |
| Tranche 3 | 865 million | pounds | Perpetual notes | 6.5 years | 8.25% (initial) |
Stellantis stated that “This issuance will further strengthen Stellantis’ capital structure and liquidity position.” Settlement of the notes is expected on March 16.
Context: Strategic Shift Away from a Pure EV Focus
The bond sale comes after Stellantis reported 22.2 billion euros in impairments tied to a reassessment of its electric-vehicle ambitions. The company decided to scale back its prior electric-vehicle push, with CEO Antonio Filosa linking the move to earlier assumptions that overestimated how rapidly consumers would move to cleaner driving technologies.
The group, whose portfolio includes Jeep, Peugeot, Ram, Chrysler, Fiat and Citroen, is recalibrating its product strategy to place more weight on hybrid and internal combustion engine models. This direction contrasts with the earlier EV-centered approach under former CEO Carlos Tavares, amid what Stellantis described as weaker-than-expected demand for fully electric vehicles, particularly in the United States.
Outlook and Upcoming Business Plan
Stellantis plans to outline its new long-term business plan on May 21, providing further detail on how the revised strategy across electric, hybrid, and internal combustion offerings will be implemented.
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