Fiat, the Italian carmaker, is putting the finishing touches to its first bond since its rating was cut to junk three years ago. The €1bn ($1.2bn) deal will be Fiat's largest in almost five years.

Barclays Capital, BNP Paribas, Citigroup and Unicredit Banca Mobiliare are arranging the deal, which will be Fiat's first bond since March 2002, according to investment banking research company Dealogic.