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Citigroup seeks $14b capital boost

Business Materials 13 January 2008 20:53 (UTC +04:00)

Citigroup may raise as much as $14 billion from Chinese, Kuwaiti and public market investors in a capital-raising effort, the Financial Times reported, citing people familiar with the negotiations.

About $9 billion would come from China with about $1 billion being contributed by the Kuwait Investment Authority, the newspaper said. A public placement of shares would raise a further amount of between $2 billion and $4 billion, the FT said.

The mix of funds is still being adjusted and there could be last-minute changes, the FT said, citing the people involved.

The fundraising would follow the injection of $7.5 billion into Citigroup by the Abu Dhabi Investment Authority.

The deal would be the first time the Kuwait Investment Authority has invested in a US financial institution.

The Chinese party involved may be a bank such as the Industrial and Commercial Bank of China or the China Development Bank; or an investment arm of the government.

Potential Chinese investors also include China Investment Corp.

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