abu-dhabi-helps-citi-replenish-coffers

Abu Dhabi helps Citi replenish coffers

The world's biggest bank turns to the Abu Dhabi Investment Authority for $7.5 billion to shore up its capital base following subprime-related provisions.

The Abu Dhabi Investment Authority ADIA will invest $7.5 billion to buy up to 4.9% of US bank Citi.

Citi will issue equity units which are convertible into common shares on a private placement basis to the Abu Dhabi Investment Authority. Each equity unit will convert into a Citi share at prices ranging from $31.83 to $37.24 per share on four dates between 2010 and 2011 and will pay a fixed annual payment rate of 11%, payable quarterly.

ADIA has agreed to limit its ownership to a 4.9% stake in the bank. Citi further clarified that the Middle Eastern fund gains no special rights of...

¬ Haymarket Media Limited. All rights reserved.

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