Toyota Offers New Stock to Fund Hybrids, Fuel Cell Vehicles

Toyota is looking to raise money to build new hybrids and hydrogen fuel cell vehicles.

Bloomberg reports that the Japanese automaker is looking to create security for long-term investors and will sell as much as 500-billion yen ($4.2 billion) of new “Model AA” shares. The name pays homage to the company’s first passenger car and the unlisted stock will be sold for at least a 20-percent premium over common equity. The stock will also be restricted from trading for five years. The trade off for these restrictions will be a better dividend and the option to sell the shares back to Toyota at the issue price, or convert them into common stock.

SEE ALSO: 2016 Toyota Mirai Review

The automaker will initially sell 50-million shares once the plan is approved at the company’s annual shareholder meeting in June. According to a statement from Toyota, the divided will start at 0.5 percent and will increase by 0.5 percent annually to a maximum of 2.5 percent. Toyota wants to raise capital to help fund new safety systems, hybrids and fuel cell vehicles, like the Mirai.

[Source: Bloomberg]

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