January 15, 2008

Citi getting $12.5 billion in new capital: marketwatch



said Tuesday that it is raising $12.5 billion in new capital from a private placement and public offering of preferred shares, as well as cutting its dividend.

It is getting $6.90 billion from the private placement, which includes investment from several outside investors including the Government of Singapore Investment Corporation Pte Ltd (GIC), Capital Research Global Investors and former chairman and CEO Sandy Weill and his family.

The firm is also selling $2 billion of preferreds to the public.

The investments will bolster Citi's balance sheet and help maintain regulatory capital levels after huge writedowns from soured mortgage investments and bad loans.

Citi, the nation's largest bank based on assets, earlier reported a loss of $9.8 billion and cut its dividend 40%.

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