Fiat Chrysler Automobiles (FCA) is expecting a drop of its net industrial debt by €715m if the Ferrari unit is spun off by the company.

Reuters cited FCA's previous filing with the US market regulator SEC stating that it would receive €2.25bn from Ferrari before it separates the luxury sports car unit from its main group this year.

FCA reportedly has net debt of €11.37bn at end-September, and the payment from Ferrari along with removal of Ferraris €133m debt from FCA will make up for the loss of Ferrari's cash and receivables worth €1.67bn.

FCA Chief Executive Sergio Marchionne is expected to sell 10% stake via a public offering and give the rest of Farrari's stake to its shareholders.

According to reports the split is a part of a capital-raising plan which includes a $2.5bn mandatory convertible bond issue.

According to the filing JP Morgan, Goldman Sachs, Barclays and UBS are underwriters for the mandatory convertible bond.