Stellantis has issued three perpetual hybrid bonds in its first transaction of this type, a move aimed at strengthening the group’s balance sheet during a particularly delicate phase for the industry and the company’s competitive position. On February 6, 2026, Stellantis received authorization to issue up to €5 billion in hybrid instruments, and with this placement the group led by Antonio Filosa takes its first concrete step in that direction.
Stellantis uses hybrid bonds to support EV transition
The company structured the three tranches with different currencies and timelines. The first tranche, denominated in euros, carries a five-year non-call period, with an early redemption window between March and June 2031. The second tranche, issued in pounds, includes a six-year and three-month non-call period, with a potential redemption window between June and September 2032. The third tranche, again in euros, extends to seven years and nine months, with a possible early redemption window between December 2033 and March 2034.
Technically, these instruments qualify as perpetual bonds, but the structure includes defined windows that allow Stellantis to redeem the securities early. This structure is common in hybrid bonds and gives companies greater financial flexibility while allowing rating agencies to treat part of the issuance more like equity than traditional debt.
S&P estimates that even if Stellantis were to issue the full €5 billion authorized amount, the ratio between hybrid bonds outstanding and adjusted capitalization would remain around 9%. The agency considers that level manageable and far below the 15% threshold beyond which rating agencies typically reduce the equity credit assigned to hybrid instruments.
Moody’s also maintains a stable outlook for the group. The agency expects Stellantis to recover profitability and generate positive free cash flow within the next 12 to 18 months, supported in part by higher unit sales driven by recently launched models.
The transaction also sends a signal to investors. Stellantis must balance the costs of the energy transition with growing competitive pressure across several global markets, and strengthening the company’s financial structure helps address that challenge.
