Stellantis returns to the U.S. bond market, raising $2 billion this week through a three-part offering that combines fixed- and floating-rate notes. The move comes as financing costs have reached their lowest point of the year, offering the automaker the chance to secure funding under highly favorable conditions.
Stellantis Financial Services US Corp launches new bonds with maturities of up to five years
Stellantis Financial Services US Corp., the group’s American financial division, has launched new bonds with maturities of up to five years. Investor demand was particularly strong for the five-year tranche, priced at 1.8 percentage points above comparable U.S. Treasuries, a spread more favorable than early estimates, which had suggested a margin closer to 2.15 points.
This is Stellantis’ first U.S. bond issuance since March, when the company raised $2.25 billion. The move comes amid a period of intense activity in the investment-grade market, with eight other companies also taking advantage of strong demand for new issues on the very same day. Through this operation, Stellantis aims to raise capital to finance its operations, support investment programs, and strengthen its global strategy, making the most of a particularly receptive market environment.
The transaction was managed by some of Wall Street’s biggest players, including Bank of America, Citigroup, Goldman Sachs, JPMorgan, and Wells Fargo. Credit rating agencies Moody’s and S&P Global assigned the notes Baa2 and BBB ratings, respectively. While these ratings are not at the very top of the scale, they remain firmly within investment-grade territory, signaling moderate but manageable credit risk.
For Stellantis, this bond issuance represents a strategic step to reinforce its financial solidity, while at the same time offering investors an attractive return opportunity. With the significant resources required to sustain electrification, launch new models, and support global operations, securing funding today at contained costs could prove a winning move over the long term. In essence, the group has locked in a $2 billion financial cushion under advantageous conditions, taking advantage of a particularly favorable market and still-low interest rates.
