Goldman could end up with 15.1 percent of the Hong Kong-listed Geely if it fully converts the bonds and warrants, the Chinese carmaker said in a statement.

Geely said it will issue HK$1.897 billion ($245 million) worth of 3 percent convertible bonds due 2014 to GS Capital Partners VI Fund L.P., an affiliate of Goldman Sachs.

The bonds will be attached with 299.53 million warrants which each has a right to convert into Geely shares at HK$2.30 per share.

The bonds are convertible into 998.42 million Geely shares at a conversion price of HK$1.90 each, representing a 6.1 percent premium over the previous close prior to a trading suspension.

Trading in Geely shares will resume on September 23.

Geely, which has said its parent is considering bidding for Ford's Swedish car brand Volvo, said the proceeds will be used to fund capital expenditure and potential acquisitions, as well as for general working capital. It gave no details.

The fund-raising will allow Geely to buy new car plants being developed by its parent, Geely Holdings Group Co, in cash and thus free up capital from its parent for any possible acquisitions.

Geely, China's 10th largest vehicle maker which competes against Chery Automobile and other local brands, has said it plans to nearly double its car-making capacity to 685,000 units a year in the next few years.

The bonds could also give Goldman exposure to China's fast growing auto market, the world's largest.

Hangzhou-based Geely posted 35 percent sales growth in the first eight months of the year to 185,000 units, equivalent to 74 percent of its full-year target of 250,000.

Shares of Geely have nearly tripled this year to HK$1.79 before trading was suspended last Wednesday, beating a 51 percent gain on the broader market.

US billionaire Warren Buffett's Berkshire Hathaway Inc agreed to invest $230 million for about 10 percent of Chinese battery and electric car maker BYD Co Ltd last year.

The investment has realised a $1.8 billion paper profit for Buffett.