MILAN — Stellantis stated its unit FCA Italy and different Italian subsidiaries had repaid a 6.3 billion euro ($7 billion) mortgage to Italy’s high lender Intesa Sanpaolo.
The mortgage was “instrumental” within the restart of commercial manufacturing after the COVID-19 outbreak and supplied continuity for key funding tasks, the corporate stated in a press release on Friday.
It supplied liquidity to the automaker’s enterprise in Italy and to its Italian suppliers, the assertion stated.
The mortgage had a three-year maturity and credit score export company SACE supplied a assure on 80 % of its quantity.
Stellantis stated it was now able to repay it, forward of its maturity in March 2023.
The automaker was fashioned in January 2021 from the merger of PSA Group and Fiat Chrysler. Stellantis’ enterprise in Italy has been benefiting from excessive ranges of money and synergies from the merger, serving to the corporate to repay the mortgage.
Italy’s finance ministry authorised the mortgage to Fiat Chrysler in June 2020 to pay staff’ salaries, suppliers and for deliberate investments at services within the nation.
Beneath the phrases of the mortgage settlement, Stellantis was dedicated to proceed manufacturing actions in Italy and chorus from decreasing the workforce.
Bloomberg contributed to this report