PSA Peugeot Citroën’s captive finance provider Banque PSA has sold approximately €470m (£400m) of securities backed by vehicle loans in the French market.

In a statement, PSA Peugeot Citroën said the sale was part of a strategy to diversify its funding sources and to increase the share of funding from its securitization program. The loans originated from Credipar, the fully owned subsidiary of Banque PSA Finance.

The €470m was divided between €450m Class A notes which were expected to have a weighted average life of 2.7 years at 85 basis points above one-month Euribor, and €19.7m Class B notes, which were priced at 150 basis points above one month Eurbor with an average life of 4.9 years.

Banque PSA is currently waiting for EU approval of the remainder of €7bn-worth of bonds guaranteed by the French government to bailout the company. The French government agreed to give PSA financial aid in October 2012, since when the EU has begun an investigation to see if the deal broke EU Competition laws.

A temporary agreement with the EU allowed Banque PSA to sell an initial tranche of €1.2bn of the €7bn in March, however the European commission announced on 2 May it needed to decide whether the plan could hurt competition and restore the company’s long-term independent financial viability.

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By GlobalData