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Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
Credit Facilities
Lenders of committed credit facilities have the obligation to make advances up to the facility amount. Lenders of uncommitted facilities have the right to terminate the agreement with prior notice to CNH Industrial. At December 31, 2022, CNH Industrial’s available committed unsecured facilities expiring after twelve months amounted to $5.1 billion ($5.2 billion at December 31, 2021).
In March 2019, CNH Industrial signed a five-year committed revolving credit facility for €4 billion ($4.5 billion at March 31, 2019 exchange rate) due to mature in 2024 with two extension options of 1-year each, exercisable on the first and second anniversary of the signing date. CNH Industrial exercised the first of the two extension options as of February 28, 2020 and the second extension option as of February 26, 2021. The facility is now due to mature in March 2026 for €3,950.5 million; €49.5 million within the facility will mature in March 2025. The credit facility replaced the existing five-year €1.75 billion credit facility due to mature in 2021. The €4 billion facility is guaranteed by the parent company with cross-guarantees from each of the borrowers (i.e., CNH Industrial Finance S.p.A., CNH Industrial Finance Europe S.A. and CNH Industrial Finance North America Inc.), includes typical provisions for contracts of this type and size, such as: customary covenants mainly relating to Industrial Activities including negative pledge, a status (or pari passu) covenant, restrictions on the incurrence of indebtedness by certain subsidiaries, customary events of default (some of which are subject to minimum thresholds and customary mitigants) including cross-default, failure to pay amounts due or to comply with certain provisions under the loan agreement, the occurrence of certain bankruptcy-related events and mandatory prepayment obligations upon a change in control of CNH Industrial or the borrower and a financial covenant (Net debt/EBITDA ratio relating to Industrial Activities) that is not applicable with the current ratings levels. The failure to comply with these provisions, in certain cases if not suitably remedied, can lead to the requirement to make early repayment of the outstanding advances. At December 31, 2022, the Company was in compliance with all covenants in the revolving credit facility.
At December 31, 2022, Financial Services’ committed asset-backed facilities expiring after twelve months amounted to $2.9 billion ($3.9 billion at December 31, 2021 of which $3.0 billion excluding Iveco Group), of which $2.1 billion at December 31, 2022 ($2.8 billion at December 31, 2021 of which $2.0 billion excluding Iveco Group) were utilized.
Debt
A summary of issued bonds outstanding as of December 31, 2022, is as follows:
CurrencyFace value of outstanding bonds (in millions)CouponMaturityOutstanding amount
(in millions)
Industrial Activities
Euro Medium Term Notes:
CNH Industrial Finance Europe S.A. (1)
EUR369 2.875 %May 17, 2023393 
CNH Industrial Finance Europe S.A. (1)
EUR750 0.000 %April 1, 2024800 
CNH Industrial Finance Europe S.A. (1)
EUR650 1.750 %September 12, 2025694 
CNH Industrial Finance Europe S.A. (1)
EUR100 3.500 %November 12, 2025107 
CNH Industrial Finance Europe S.A. (1)
EUR500 1.875 %January 19, 2026533 
CNH Industrial Finance Europe S.A. (1)
EUR600 1.750 %March 25, 2027640 
CNH Industrial Finance Europe S.A. (1)
EUR50 3.875 %April 21, 202853 
CNH Industrial Finance Europe S.A. (1)
EUR500 1.625 %July 3, 2029533 
CNH Industrial Finance Europe S.A. (1)
EUR50 2.200 %July 15, 203953 
Other Bonds:
CNH Industrial N.V. (2)
USD600 4.500 %August 15, 2023600 
CNH Industrial N.V. (2)
USD500 3.850 %November 15, 2027500 
Hedging effects, bond premium/discount, and unamortized issuance costs(70)
Total Industrial Activities4,836 
Financial Services
CNH Industrial Capital LLCUSD600 1.950 %July 2, 2023600 
CNH Industrial Capital LLCUSD500 4.200 %January 15, 2024500 
CNH Industrial Capital LLCUSD500 3.950 %May 23, 2025500 
CNH Industrial Capital LLCUSD400 5.450 %October 14, 2025400 
CNH Industrial Capital LLCUSD500 1.875 %January 15, 2026500 
CNH Industrial Capital LLCUSD600 1.450 %July 15, 2026600 
CNH Industrial Capital Canada Ltd.CAD300 1.500 %October 1, 2024222 
CNH Industrial Capital Australia Pty LimitedAUD250 1.750 %July 8, 2024170 
CNH Industrial Capital Argentina S.A.USD31 0.000 %2023/202531 
Banco CNH Industrial Capital S.A.BRL3,077 
8.120%
15.350%
2023/2028589 
Hedging effects, bond premium/discount, and unamortized issuance costs(66)
Total Financial Services4,046 
(1) Bond listed on the Irish Stock Exchange
(2) Bond listed on the New York Stock Exchange

A summary of total debt as of December 31, 2022 and 2021, is as follows:

20222021
(in millions)Industrial ActivitiesFinancial ServicesTotalIndustrial ActivitiesFinancial ServicesTotal
Total Bonds$4,836 $4,046 $8,882 $5,184 $3,280 $8,464 
Asset-backed debt— 9,751 9,751 — 8,875 8,875 
Other debt73 4,256 4,329 151 3,407 3,558 
Intersegment debt63 888 — 150 181 — 
Total Debt$4,972 $18,941 $22,962 $5,485 $15,743 $20,897 
Payables to Iveco Group5 151 156 334 168 502 
Total Debt (Including Payables to Iveco Group)$4,977 $19,092 $23,118 $5,819 $15,911 $21,399 
The weighted-average interest rate on consolidated debt at December 31, 2022, and 2021 was 3.5% and 2.3%, respectively.
In May 2021, CNH Industrial Capital LLC issued $600 million of 1.450% notes due in 2026 at an issue price of 99.208% of their principal amount.
In July 2021, CNH Industrial Capital Australia Pty. Limited issued AUD200 million of 1.750% notes due in 2024 at an issue price of 99.863% of their principal amount.
In September 2021, CNH Industrial Capital Australia Pty. Limited issued AUD50 million of 1.750% notes due in 2024 at an issue price of 101.069% of their principal amount. The issue is a private placement.
In September 2021, CNH Industrial Capital Canada Ltd issued CAD 300 million of 1.500% notes due in 2024 at an issue price of 99.936% of their principal amount.
In April 2022, Banco CNH Industrial Capital S.A. issued BRL 600 million of notes in two tranches: BRL 177 million at CDI + 0.90%, due in 2024 and BRL 423 million at CDI +1.10%, due in 2025.
In May 2022, Banco CNH Industrial Capital S.A. issued BRL 350 million of notes at CDI +1.10%, due in 2025, through a private placement.
In May 2022, CNH Industrial Capital LLC issued $500 million of 3.950% notes due in 2025 at an issue price of 99.469% of their principal amount.
In September 2022, Banco CNH Industrial Capital S.A. issued BRL 700 million of notes in three tranches: BRL 268 million at CDI + 0.90%, due in 2024; BRL 193 million at CDI +1.05%, due in 2025 and BRL 239 million at CDI +1.30%, due in 2026.
In October 2022, CNH Industrial Capital LLC issued $400 million of 5.450% notes due in 2025 at an issue price of 99.349% of their principal amount.
In October 2022, CNH Industrial Capital Argentina S.A. issued $23 million of 0.000% notes due in 2025. This was a voluntary exchange offer for the outstanding USD-linked Series 1 notes issued in 2020 due August 2023.
In November 2022, Banco CNH Industrial Capital S.A. issued BRL 22 million of notes at CDI + 1.05%, due in 2025, through a private placement.
In December 2022, Banco CNH Industrial Capital S.A. issued BRL 190 million of notes at CDI + 0.85%, due in 2024, through a private placement.
On January 4, 2022 Fitch Ratings raised its Long-Term Issuer Default Rating on CNH Industrial N.V. to ‘BBB+’ from ‘BBB-’. Fitch also upgraded CNH Industrial Finance Europe S.A.’s senior unsecured rating to ‘BBB+’ from ‘BBB-'. The Outlook is Stable. On January 7, 2022 Fitch has upgraded the Long-Term Issuer Default Ratings and senior unsecured debt ratings of CNH Industrial Capital LLC (CNHI Capital) and CNH Industrial Capital Canada Ltd. (CNH Canada) to 'BBB+' from 'BBB-'. The Rating Outlook is Stable. Fitch has also upgraded CNHI Capital's Short-Term IDR and commercial paper (CP) ratings to 'F2' from 'F3'.
On February 25, 2022, Moody's Investors Service (Moody's) upgraded the senior unsecured ratings of CNH Industrial N.V. (CNHI) and its supported subsidiaries including CNH Industrial Capital LLC, CNH Industrial Finance Europe S.A. (CNHI Finance), CNH Industrial Capital Australia Pty. Limited and CNH Industrial Capital Canada Ltd. to Baa2 from Baa3. At the same time, Moody's withdrew CNHI Finance's short term rating of (P)P-3. The outlook is stable.
The bonds issued by CNH Industrial may contain commitments of the issuer, and in certain cases commitments of CNH Industrial N.V. in its capacity as guarantor, which are typical of international practice for bond issues of this type such as, in particular, negative pledge (in relation to quoted indebtedness), a status (or pari passu) covenant and cross default clauses. A breach of these commitments can lead to the early repayment of the applicable notes. The bonds guaranteed by CNH Industrial N.V. under the Euro Medium Term Note Programme (and its predecessor the Global Medium Term Note Programme), as well as the notes issued by CNH Industrial N.V., contain clauses which could lead to early repayment if there is a change of control of CNH Industrial N.V. leading to a rating downgrading of CNH Industrial N.V.
Other debt consists primarily of borrowings from banks which are at various terms and rates. Included in Other debt of Financial Services is approximately $1.2 billion and $1.1 billion at December 31, 2022 and 2021, respectively, of funding provided by the Brazilian development agency, Banco Nacional de Desenvolvimento Econômico e Social (BNDES). The program provides subsidized funding to financial institutions to be loaned to customers to support the purchase of agricultural or construction machinery or commercial equipment in accordance with the program.
A summary of the minimum annual repayments of debt as of December 31, 2022, for 2023 and thereafter is as follows:
Industrial
Activities
Financial
Services
Consolidated
(in millions)
2023$1,032 $8,556 $9,588 
2024800 3,539 4,339 
2025800 2,670 3,470 
2026533 2,133 2,666 
20271,101 664 1,765 
2028 and thereafter643 491 1,134 
Payables to Iveco Group5 151 156 
Intersegment63 888 — 
Total$4,977 $19,092 $23,118 
Please refer to “Note 15: Financial Instruments” for fair value information on debt.