According to the report, Citi is planning to raise the funds in an effort to repay US$20 billion of bailout funds.
Attributing to people close to the situation, FT said Citi was also planning to raise around US$2 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, they said that 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), the daily said.
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks