Fiat has announced the pricing of its new seven year Euro bond issue, which will raise the carmaker 1 billion euros, higher than originally expected, part of which will be used to reduce overall Group debt levels. Fiat confirmed they would return to the international bond markets after an absence of several years when they announced their Fourth Quarter and Full Year accounts at the end of last month, and with their financial position vastly improved it was felt the timing and market conditions were now right.

"Following Fiat’s 30th January announcement of the launch of a benchmark seven year Euro bond, Fiat confirms today that the offering has a principal amount of 1,000 million euros of Senior Notes due 2013 and it has been priced at an issue price of 100 pct and a coupon of 6.625 pct," read a statement issued by the Fiat Group yesterday. "It is currently expected that the offering will close on 10 February 2006, subject to customary closing conditions.
 

"The notes will be issued by Fiat Finance and Trade Ltd. société anonyme, a wholly-owned subsidiary of Fiat S.p.A., and guaranteed by Fiat SpA. The notes are only being offered and sold outside the United States to institutional inves-tors that are non-U.S. persons under Regulation S and have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any other securities laws. The notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements," the Fiat Group statement concluded.