Stellantis NV announced on Wednesday that it has priced a multi-tranche hybrid bond offering equivalent to €5 billion (approximately $5.8 billion). This move comes just weeks after the automaker implemented a major revision to its electric vehicle strategy, resulting in billions of euros in impairment charges.

The car manufacturer announced last month that it would record a €22.2 billion asset impairment due to a slowdown in its electrification push. Chief Executive Officer Antonio Filosa stated that this adjustment was necessary because the company had overestimated the speed at which consumers would transition to clean-energy driving.

**Bond Issuance Details** As part of this initiative, Stellantis had previously announced its intention to issue up to €5 billion in non-convertible, subordinated perpetual hybrid bonds to help maintain a robust balance sheet and available liquidity.

Stellantis confirmed on Wednesday that the bond issuance was completed on Tuesday and consists of three tranches: * €2.2 billion in perpetual fixed-rate reset notes, non-callable for 5.25 years, with a coupon rate of 6.25% * €1.8 billion in perpetual notes, non-callable for 8 years, with a coupon rate of 6.875% * £865 million (approximately $1.16 billion) in perpetual notes, non-callable for 6.5 years, with an initial coupon rate of 8.25%

The company, whose brands include Jeep and Peugeot, said in a statement: "This issuance will further strengthen Stellantis's capital structure and liquidity position." The bonds are expected to be settled on March 16.

**Strategic Shift** Stellantis, whose brand portfolio also includes Ram, Chrysler, Fiat, and Citroën, is increasing its focus on hybrid and internal combustion engine vehicles. This marks a shift from the EV-centric strategy championed by former CEO Carlos Tavares. The company cited lower-than-expected demand for fully electric models, particularly in the U.S. market, as the reason for the change.

Stellantis is scheduled to unveil a new long-term business plan on May 21.