LONDON, June 24 (Reuters) - French automaker Peugeot plans to launch a 1.5 billion euro bond secured on its customers' repayments of their car loans by the end of next week, a source close to the deal said on Monday.
The two-tranche bond will be sold through the Auto ABS Compartiment 2002-1 funding vehicle. The loans backing the deal were originated by Peugeot's financing units, Banque PSA Finance and Credipar, and advanced to Spanish and French customers.
The deal breaks down into a 1.44 billion euro triple-A rated tranche that is expected to be priced at around 18 basis points over Euribor and a 60 million euro tranche, rated single-A, that should be priced at roughly 45 basis points over Euribor.
The bond includes a 15,000 euro tranche that is unrated and will be retained by the issuer.
Credit Suisse First Boston and Credit Agricole Indosuez are managing the transaction.