SocGen German Unit Said to Offer Auto Loan-Backed Securities

A German unit of Societe Generale (GLE) SA is selling about 500 million euros of bonds backed by auto loans, according to three investors with knowledge of the matter.

Bank Deutsches Kraftfahrzeuggewerbe AG will issue the asset-backed securities through the Red & Black Auto Germany 1 vehicle, and the notes are expected to carry top credit ratings, the investors said.

The bonds will have a weighted average life of about 1 1/2 years and be backed by repayments on about 72,000 German auto loan originated by Bank Deutsches Kraftfahrzeuggewerbe, the investors said. An investor roadshow is scheduled to start on Feb. 1.

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