Finance
Stellantis sells 5 billion euros in bonds to bolster finances after EV charges
Published by Global Banking & Finance Review®
Posted on March 11, 2026
2 min readLast updated: March 11, 2026
Quick Summary
Stellantis has raised €5 billion through a multi‑tranche hybrid bond issue—comprising €2.2 billion, €1.8 billion, and £865 million—to shore up liquidity following a €22.2 billion EV‑strategy impairment charge.
Stellantis Sells €5 Billion in Hybrid Bonds Following EV Charge Setback
Stellantis' Hybrid Bond Offering and Strategic Shift
MILAN, March 11 (Reuters) - Stellantis said on Wednesday it has priced a multi-tranche 5 billion euro ($5.8 billion) equivalent hybrid bond offering, tapping capital markets weeks after it announced multi-billion charges in a major reset of its electric vehicle strategy.
Background: EV Strategy Reset and Financial Impairments
The automaker announced last month it was taking 22.2 billion euros in impairments after rolling back its electric-vehicle (EV) push, a shift CEO Antonio Filosa attributed to overestimating how quickly customers would switch to cleaner driving.
Hybrid Bond Issuance Details
As part of the move, Stellantis announced it would issue up to 5 billion euros in non-convertible subordinated perpetual hybrid bonds to help it preserve a strong balance sheet and available liquidity.
Tranches and Coupon Structure
Stellantis said on Wednesday the bond offering - which was executed on Tuesday - consisted of three tranches: 2.2 billion euros in perpetual fixed‑rate resettable notes with a 5.25-year non-call period and a 6.25% coupon; 1.8 billion in perpetual notes with an 8-year non-call period and a 6.875% coupon; 865 million pounds ($1.16 billion) in perpetual notes with a 6.5‑year non-call period initially paying an 8.25% coupon.
"This issuance will further strengthen Stellantis' capital structure and liquidity position," the Jeep-to-Peugeot maker said in a statement.
The notes settlement is expected on March 16.
Strategic Emphasis on Hybrid and Internal Combustion Models
The automaker, whose brands also include Ram, Chrysler, Fiat and Citroen, is shifting to put greater emphasis on hybrid and internal combustion models - versus former CEO Carlos Tavares' EV-centred strategy - arguing demand for fully electric vehicles has lagged earlier projections, particularly in the United States.
Upcoming Business Plan Presentation
Stellantis will present its new long-term business plan on May 21.
Currency Exchange Rates
($1 = 0.8595 euros)
($1 = 0.7441 pounds)
(Reporting by Giulio PiovaccariEditing by Keith Weir)
Key Takeaways
- •The bond issuance, priced March 10 and settling March 16, strengthens Stellantis’s balance sheet amid its strategic pivot after overestimating EV demand and booking €22.2 billion in H2 2025 charges (stellantis.com).
- •The bonds include perpetual fixed‑rate resettable tranches: €2.2 billion (6.25%, 5.25‑year non‑call), €1.8 billion (6.875%, 8‑year non‑call), and £865 million (8.25%, 6.5‑year non‑call) (stellantis.com).
- •This financing supports liquidity while Stellantis refocuses on hybrid and ICE models and prepares to unveil a new strategic plan on May 21 at its Investor Day (electrive.com).
References
Frequently Asked Questions about Stellantis sells 5 billion euros in bonds to bolster finances after EV charges
1Why did Stellantis issue €5 billion in hybrid bonds?
Stellantis issued the bonds to strengthen its capital structure and preserve liquidity after recording significant impairments related to its electric vehicle strategy.
2What are the details of Stellantis' bond offering?
The offering consists of three tranches totaling €5 billion: €2.2B in 5.25-year non-call notes, €1.8B in 8-year non-call notes, and £865M in 6.5-year non-call notes, each with varying coupons.
3What prompted Stellantis to restructure its electric vehicle strategy?
Stellantis restructured its EV strategy due to overestimating customer demand for electric vehicles, especially in the United States, leading to €22.2 billion in impairments.
4When will Stellantis present its new long-term business plan?
Stellantis is scheduled to present its new long-term business plan on May 21.
5Which automotive brands are part of Stellantis?
Stellantis owns brands including Jeep, Peugeot, Ram, Chrysler, Fiat, and Citroen.
