FRANKFURT, June 11 Volkswagen will
sell up to 1.2 billion euros ($1.6 billion) in bonds that will
be converted into shares to bolster its car finance arm, the
second such issue in seven months.
"Proceeds will be used to strengthen the capital base of
Volkswagen and to finance further growth - also in the Financial
Services Division," the German carmaker said on Tuesday.
The new mandatory convertible notes come on top of a similar
issue VW placed in November last year. They have a coupon of 5.5
percent and will be offered at an issue price of 105.64 percent
of their principal amount, it added.
Upon maturity on Nov. 9, 2015, the notes will be converted
into preferred shares without voting rights from Volkswagen's
existing conditional capital.
VW investor Qatar Holding LLC has agreed to buy new
mandatory convertible notes, VW said, without specifying the
J.P. Morgan will act as bookrunner of the