French Car Financier RCI Makes First Foray in Strong AT1 Market

Renault SA’s car financing unit RCI Banque SA is looking to sell its first Additional Tier 1 bond at a time when investors are snapping up this risky type of debt.

The company has asked banks to arrange calls with investors from Monday ahead of an issue that won’t exceed €400 million ($469 million), according to a person familiar with the matter, who asked not to be identified. It’s a rare AT1 from a car financing firm, with most such debt issued by banks.

The offering will come just as AT1 bond spreads, a key risk metric for investors, ...