Stellantis on the market with hybrid bond, first tranche of 2.2 billion

As announced in recent weeks, on the occasion of the strategic 'reset' (costing some EUR 25 billion in extraordinary charges), Stellantis is finalising an offer of hybrid perpetual subordinated bonds. An intervention on the capital that, in the vision of the top management, is mainly aimed at supporting the group's liquidity in this delicate relaunch phase: together with the preliminary results for the second half of the year, and therefore with the final results for the entire year (closed with a loss of EUR 22.3 billion), Stellantis had announced that, in view of the net loss in 2025, no dividends would be distributed in 2026, and that the board of directors had authorised the issue of non-convertible perpetual subordinated hybrid bonds of up to EUR 5 billion.

The issue will be structured in the following tranches: eUR 2.2 billion of fixed-rate capital securities, non-redeemable for the first 5.25 years, perpetual maturity and an annual coupon of 6.250% until the first reset date of 16 June 2031; EUR 1.8 billion of fixed-rate capital securities, non-redeemable for the first 8 years, perpetual maturity and an annual coupon of 6.875% until the first reset date of 16 March 2034; £865 million of fixed rate vapital securities, non-redeemable for the first 6.5 years, perpetual maturity and an annual coupon of 8.250% until the first reset date of 16 September 2032. The offer is scheduled to be settled on 16 March. The offer fulfils and exhausts the authorisation granted by the company's board of directors to issue hybrid perpetual subordinated bonds of up to EUR 5 billion. 'This issue will further strengthen Stellantis' capital structure and liquidity position,' explained the note from the French-Italian automotive group.