FCA Enters into €6.3 Billion Credit Facility with Intesa Sanpaolo
FCA Italy S.p.A., a wholly owned subsidiary of Fiat Chrysler Automobiles N.V., and other Italian companies in the FCA Group announce that they have signed a 3-year, €6.3 billion credit facility with Intesa Sanpaolo, Italy’s largest banking group, the proceeds of which will be dedicated exclusively to FCA’s activities in Italy and to support the more than 10,000 small and medium enterprises that make up the Italian automotive sector. The facility will be guaranteed by FCA N.V.
The facility will be 80% guaranteed by SACE, Italy’s Export Credit Agency, under the Italian Government’s Liquidity Decree (“Decreto Liquidità”), as overseen by the Ministry of Economy and Finance - MEF, and the Ministry of Economic Development – MISE. The funds under the facility will be available upon issuance of the SACE guarantee.
Under the facility’s innovative mechanism – which provides a potential model for assistance to other business sectors in Italy – all disbursements from the credit facility will be managed through dedicated accounts opened with Intesa Sanpaolo for the purpose of providing liquidity to FCA’s business in Italy and to its Italian suppliers, thereby supporting the restart of industrial production in Italy and the continuation of key investment projects at the Group’s Italian plants and suppliers.
The new credit facility forms part of FCA’s broader plan to support the safe restart of its Italian operations. This follows an unprecedented period in which rapid measures were taken to protect employees, families and communities during the Covid-19 emergency, and which resulted in a complete suspension of FCA’s industrial and commercial activities in Italy, with the inevitable impact on the entire automotive ecosystem in Italy.
Commenting on the agreement, Pietro Gorlier, FCA’s Chief Operating Officer for the EMEA region said: “Faced with an unprecedented crisis, this is an example of Italy coming together to safeguard a vital industrial ecosystem. The combined strengths of government, our nation’s largest bank and Fiat Chrysler Automobiles have been put to work to ensure the Italian automotive system as a whole can continue to play its role in the restart of Italy’s economy. 100% of the money this facility provides will be directed to our Italian business and so to the thousands of companies and hundreds of thousands of workers who depend on the successful relaunch of our entire sector as we continue a transformative shift to a new electric and hybrid powered future.”
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.