Stellantis N.V. priced a €5 billion subordinated perpetual hybrid bond offering on March 10, 2026, with settlement scheduled for March 16. The issuance is the company’s first hybrid bond since the February 2026 reset of its electric‑vehicle strategy and fully utilizes the board’s authorization to issue up to €5 billion in such instruments.
The offering is divided into three tranches: €2.2 billion carries a 6.250 % coupon with a 5.25‑year non‑call period; €1.8 billion carries a 6.875 % coupon with an 8‑year non‑call period; and £865 million carries an 8.250 % coupon with a 6.5‑year non‑call period. All tranches are subordinated and perpetual, blending debt and equity characteristics to provide flexible capital for the company.
The bond proceeds come at a time when Stellantis is restructuring its vehicle mix under a new multi‑energy platform that balances electric, hybrid and internal‑combustion models. The reset, announced in February, included €22.2 billion to €25.4 billion in charges for the second half of 2025, reflecting an over‑estimation of the pace of EV adoption and operational execution issues. Those charges contributed to a €22.3 billion net loss for FY 2025, a sharp reversal from a €5.5 billion profit in 2024, and the suspension of the 2026 dividend.
The proceeds will be used to strengthen Stellantis’s balance sheet and fund ongoing investments in the multi‑energy strategy, including new manufacturing capacity in the United States and continued development of hybrid and internal‑combustion platforms. By issuing hybrid bonds, the company can raise capital at a lower cost than traditional debt while preserving equity dilution, thereby improving liquidity and supporting future product development.
CEO Antonio Filosa said the charges “largely reflect the cost of overestimating the pace of the energy transition that distanced us from many car buyers’ real‑world needs, means and desires.” Stellantis also stated that “this issuance will further strengthen Stellantis’ capital structure and liquidity position.”
The company’s financial performance has been strained by U.S. tariff headwinds, which are expected to add significant costs in 2025 and 2026. Net revenues for FY 2025 were €153 billion, a 2 % decline year‑over‑year, while the company’s adjusted operating income margin fell to –0.5 % for the full year, reflecting the impact of tariff expenses and the EV reset charges.
The hybrid bond issuance signals Stellantis’s intent to navigate the current financial challenges and reposition its vehicle portfolio. By securing flexible capital, the company aims to maintain operational flexibility, support its multi‑energy strategy, and restore confidence among investors amid ongoing market headwinds.
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