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Suzuki to raise $1.8 bn in bonds; cancel VW shares to fund India plans: Bloomberg

As Japanese automaker Suzuki Motor Corp looks to expand in India, it plans to sell  $1.8 billion (200 billion yen) worth of convertible bonds and cancel most of the stock it bought back from Volkswagen AG last year, Bloomberg reported on Monday. 

According to the report, a statement filed on Monday with the Tokyo stock exchange said that the automaker will sell the bonds to fund the building of its $2.8 billion factory in Gujarat. 

The report cited a separate statement by the company saying that it will also "cancel 70 million treasury shares, or 12.5% of outstanding stock, to boost returns for investors after ending its partnership with Volkswagen in September". 

The Bloomberg report said that Suzuki won approval for setting up the car plant in India from its shareholders in December.