FCA Bank* acting through its Irish Branch successfully priced today a Euro 850 million offering of unsecured senior debt securities due November 2023, with a fixed rate coupon set at 0.125%. This issuance represents the lowest ever coupon for FCA Bank in the Eurobond market, with an order book of over Euro 5 billion from 277 investors. This issuance, the third one in 2020, falling just a couple of months after the September 2020 trade, accelerates the execution of the 2021 refinancing plan and “further strengthens the group’s funding position, confirming the investors’ confidence in FCA Bank.”
It also deftly sidesteps the consequences of conservative Boris Johnson’s government and the Brexit madness that will isolate the British economy and perhaps see a return to the Irish people of the IRA plague of violence that the Good Friday agreement ended. This nightmare of political violence also present in the US, reappeared last August when a cleanup of the paramilitary New Irish Republican Army led to arrests on terrorism-related charges and serious rioting. If Brexit talks fail, more is likely to follow, and the membership of the New IRA and other groups could grow.
The Associated Press reports that Prime Minister Boris Johnson is “having to flip-flop after his ally Trump was defeated. He has denied that his close ties to Trump will hurt U.K.-U.S relations once Biden takes office in January.”(***See Brexit below)
AutoInformed thinks it too reflects the uncertainty in global economies as Central Banks – led by what some say is a printing-press happy US Treasury – have pushed interest rates on government debt to virtually zero.
This means such debt is no longer an easy safe-haven to protect wealth for the super-rich or those who have financial assets. It also means that ideologues such as Moscow Mitch McConnell can propose such idiotic things such as letting US State Governments go bankrupt while refusing to support working Republicans with a relief package designed to help them, their families and their small businesses through the Great Covid recession that is well underway as the virus spreads uncontrollably under the now defeated, one-term and impeached ex-President Trump.
FCA Bank is a bank operating in the motor financing sector as a joint venture between FCA Italy, part of Fiat Chrysler Automobiles, the global automotive group and Crédit Agricole Consumer Finance, which is a major participant in the consumer finance market. The company manages most of the financial activities to support sales of automotive brands in Europe. Financial and leasing programs are operated by FCA Bank and specifically designed for the dealer networks and private customers as well as for business fleets. FCA Bank SpA is present in 17 European countries and Morocco, either directly or through its subsidiaries. As of 30 June 2020 FCA Bank reported a portfolio of outstanding loans worth €25.6 billion.
***AutoInformed on Brexit
- Brexit – UK Car Production Declines -10.6%. Exports Hit
- Brexit Bloody Hell! Now Stock Exchange Issues
- Doomsday? No-Deal Brexit Impact on UK Light Vehicle Market
- No Deal Brexit to Cost UK Auto Sector £9 Billion Per Year
- Brexit Panic Takes Hold. Auto Industry Urges – Begs? – Negotiators to Avert the Business Killing Worst-Case Scenario
- Brexit Automaker Winners, Losers – Predictable and Surprising
- ‘Bloody Hell,’ What Does Brexit do to Automakers?