Thread: Citi looks to secure further $14bn in new capital from Chine

Citi looks to secure further $14bn in new capital from Chinese, Kuwaiti and public market investors.

By Henny Sender in New York

Published: January 11 2008 22:02 | Last updated: January 11 2008 22:02

Citigroup is putting the final touches to its second big capital-raising effort in as many months, seeking up to $14bn from Chinese, Kuwaiti and public market investors.

Under the proposal being discussed, the bulk of the money – roughly $9bn – would be most likely to come from China, people familiar with the negotiations say. The Kuwait Investment Authority would contribute about $1bn, while $2bn to $4bn would be raised through a public placement of shares.

The deal underscores the depth of the problems faced by banks that suffered heavy losses in the US subprime mortgage crisis. It would follow an injection of $7.5bn into Citigroup by the Abu Dhabi Investment Authority in late November.

“The second round is going very well, because Citi is seen as US Inc,â€

OMG! Chinese, Kuwaiti and Abu Dhabi.

Wonder what's going to happen when they call in this $21.5 billion?