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Toyota to issue 'Model AA' class shares for longer-term investors

Visitors walk under a logo of Toyota Motor Corp at the company's showroom in Tokyo February 4, 2015. REUTERS/Yuya Shino

TOKYO (Reuters) - Toyota Motor Corp <7203.T> said on Tuesday that it plans to issue "Model AA" class shares for medium to long-term investors, as it aims to raise capital for a business cycle that requires longer-term product planning and development.

The automaker said it has registered to issue up to 50 million shares for its first series of Model AA class stock for as much as 500 billion yen (3 billion pounds) during a one-year period beginning May 9.

The issuance schedule will be decided at a later date following approval at its June shareholders meeting. The second and subsequent series are undecided, it said.

Toyota also said it would buy back roughly the same number of common shares as the number of first-series shares issued, to avoid dilution of common stock.

Toyota named the Model AA class of stock after its first passenger car.

(Reporting by Chris Gallagher; Editing by Ryan Woo)