Fiat has announced that it intends to launch a new benchmark Eurobond which will be issued by Fiat Finance North America and quoted on the Irish Stock Exchange. The amount that the new Eurobond will raise wasn't revealed by Fiat, however this year a currently running 800 million euro bond will expire as well as a 1.7 billion euro bank credit line. Earlier this month Moody's Investor Service raised Fiat's credit rating from Ba3 to Ba3 which will have positive impact on the new bond.

"Fiat announced today that it intends to offer, subject to market and other conditions, a benchmark Eurobond," said a statement issued by the Fiat Group in Turin. "Terms of any offering will be determined on the basis of market conditions. The notes are to be issued by Fiat Finance North America, Inc., a wholly-owned subsidiary of Fiat S.p.A., under the Global Medium Term Note Programme and will be guaranteed by Fiat S.p.A. Fiat expects to make an application for the notes to be admitted to the Official List of the Irish Stock Exchange and traded on its regulated market.
 

"The notes will only be offered and sold outside the United States to institutional investors 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. Net proceeds of any offering are to be used for general corporate purposes, including the potential refinancing of the Fiat Group’s existing debt.

"This press release shall not constitute an offer to sell or a solicitation of an offer to buy the notes, nor shall there be any sale of these notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. No action has been or will be taken to permit a public offering of the notes in any jurisdiction, including Italy," the statement concluded.