Stellantis Raises Fresh Funds After EV Strategy Reset

Stellantis has priced a multi-tranche hybrid bond offering worth about €5 billion, raising fresh funds from capital markets weeks after announcing major charges linked to a reset of its electric vehicle strategy.

The automaker revealed last month that it would record impairments totalling €22.2 billion after scaling back its aggressive EV plans. CEO Antonio Filosa said the earlier strategy had overestimated how quickly customers would transition to electric mobility.

As part of efforts to maintain a strong balance sheet and adequate liquidity, the company announced plans to issue up to €5 billion in non-convertible subordinated perpetual hybrid bonds.

The bond sale, executed on Tuesday, was structured in three tranches. These include €2.2 billion in perpetual fixed-rate resettable notes with a 5.25-year non-call period and a coupon of 6.25 percent. 

Also read: Honda 0 Electric SUV & Sedan Cancelled As Losses Mount, To Shift Focus Back On Hybrids

A second tranche comprises €1.8 billion in perpetual notes with an eight-year non-call period carrying a 6.875 percent coupon. The third tranche consists of £865 million in perpetual notes with a 6.5-year non-call period and an initial coupon of 8.25 percent.

Stellantis said the issuance is expected to strengthen its capital structure and improve liquidity. Settlement of the notes is scheduled for March 16.

The automaker, whose portfolio includes brands such as Jeep, Peugeot, Ram, Chrysler, Fiat and Citroen, is adjusting its strategy to place greater emphasis on hybrid and internal combustion vehicles. The company has said demand for fully electric vehicles has been slower than earlier projections, particularly in the United States.

Stellantis is scheduled to unveil its updated long-term business strategy on May 21, 2026.