Citigroup in talks for USD 15 bn equity offering: Report
London: Global financial services firm
Citigroup is in advanced talks with regulators over its plans
to raise more than USD 15 billion through an equity offering,
a media report says.
According to a report in the Financial Times, Citigroup
is planning to raise the funds in an effort to repay USD 20
billion of bailout funds as soon as possible.
Attributing to people close to the situation, the daily
said Citi was also planning to raise around USD two billion of
mandatory convertible securities. They are a new form of
security that convert into equity when a bank`s capital ratio
falls below a pre-determined level.
However, people said the talks were at a delicate stage
and could collapse without a deal as some among Citi`s
regulators were concerned that the bank might not be strong
enough to repay the funds from the troubled asset relief
programme (TARP), FT said.
Moreover, the government is also likely to announce its
intention to sell its 34 percent stake in Citigroup over a
period of a year or so.
Citing inside sources, the daily said that the future of
an insurance policy provided by the Federal Deposit Insurance
Corporation over some USD 300 billion of Citi`s toxic assets
was also under discussion.
Yesterday, Bank of America formally returned its bail-out
funds to the government, bringing the total amount of repaid
TARP cash to USD 116 billion.
Download the all new Zee News app for Android and iOS to stay up to date with latest headlines and news stories in Politics, Entertainment, Sports, Technology, Business and much more from India and around the world.
More from India
More from World
More from Sports
More from Entertaiment
- Vladimir Putin rages as Turkey shoots down Russian plane
- I was shivering while interviewing Nirbhaya's friend, says Ramnath Goenka awardee Sudhir Chaudhary
- Intolerance issue: Proud to be Indian, won't leave country, says Aamir Khan
- If India was intolerant, then Kiran Rao wouldn't have married Aamir Khan: Baba Ramdev
- Army camp attacked in J&K's Kupwara; three JeM terrorists, one civilian killed