Renault will issue its first public sale of bonds backed by German auto loans to raise  €873 million ($1 billion), according to a Bloomberg report.

The deal by RCI Banque Germany, which is a subsidiary of Renault,  will  be backed by  251,270 loans with an average life of 1.78 years. The transaction is expected to receive ' AAA ' ratings, the report disclosed.

Renault, which has  not come to the European ABS public market since 2007, will meet with European investors next week to set final prices on the notes, Bloomberg said.

Cars Alliance Auto Loans Germany will issue the notes and Credit Agricole and Societe Generale will be the lead managers on the offering, according to the report.

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