Stellantis Announces Pricing of Hybrid Bonds Offering

Stellantis has officially announced the pricing details of its new hybrid bonds offering, a financial move designed to strengthen the company’s capital structure and support long term growth. The offering, executed on March 10, 2026, includes several tranches of subordinated perpetual hybrid securities aimed at improving liquidity while maintaining financial flexibility. Stellantis confirmed that settlement of the transaction is expected to take place on March 16, 2026.

The offering represents a major financing step for the global automaker as it continues investing in new technologies, product development, and mobility solutions across its portfolio of brands.

A Multi Tranche Hybrid Bond Structure

The hybrid bond issuance is structured into three different tranches, each with its own size, coupon rate, and non call period. These securities are known as perpetual fixed rate resettable capital securities, meaning they do not have a fixed maturity date and combine elements of both debt and equity.

The first tranche includes €2.2 billion in securities with a 6.250 percent annual coupon and a non call period of 5.25 years. The rate will remain fixed until the first reset date on June 16, 2031.

The second tranche totals €1.8 billion with a 6.875 percent annual coupon and a longer non call period of eight years. Its first reset date is scheduled for March 16, 2034.

The third tranche is issued in British currency and consists of £865 million in securities. This portion carries an annual coupon rate of 8.250 percent and has a non call period of 6.5 years, with the first reset date set for September 16, 2032.

Together these issuances utilize the full authorization previously granted by Stellantis’ board of directors to issue up to €5 billion in subordinated perpetual hybrid bonds.

Strengthening the Company’s Financial Position

According to the company, the primary purpose of the hybrid bonds offering is to strengthen its capital structure and liquidity position. Hybrid bonds are commonly used by large corporations because they can be treated partly as equity by credit rating agencies, which helps improve leverage ratios while still raising capital.

This type of financing allows Stellantis to secure long term funding without issuing additional shares, which would dilute existing shareholders. At the same time, investors receive higher yields than traditional bonds due to the additional risk associated with hybrid securities.

The successful pricing of the bonds also signals continued investor confidence in the automaker’s long term strategy.

Supporting Future Investment and Growth

Stellantis remains one of the largest automotive companies in the world with a wide range of brands that include Chrysler, Dodge, Jeep, Ram, Peugeot, Alfa Romeo, Maserati, and several others.

Securing additional capital through hybrid bonds gives the company greater flexibility to fund new vehicle programs, technology development, and global expansion initiatives.

As the automotive industry continues evolving with electrification, advanced software, and new mobility services, financial stability remains a key factor for companies competing in this rapidly changing market.

A Strategic Financial Move

The hybrid bond offering demonstrates Stellantis’ strategy of maintaining a strong balance sheet while continuing to invest in future products and technologies. With settlement expected in mid March, the new funding will soon become part of the company’s financial structure.

For Stellantis, the move represents another step in building a stable financial foundation as it navigates the next era of the global automotive industry.