AIG Finalizes Capital Raising Program at $20 Billion

American International Group Inc. (AIG) announced the completion of its capital raising program.

The program raised a total amount of approximately $20 billion through the sale of common stock, equity units and fixed income securities. The equity units and fixed income securities receive hybrid equity treatment from the rating agencies. The total amount raised exceeded the original targeted amount of $12.5 billion due to strong demand.

The capital raising program involved the public offering and sale of 196,710,525 shares of AIG common stock (including 25,657,894 shares through exercise of the over-allotment option) for $7.47 billion, and the public offering and sale of 78,400,000 equity units (including 6,400,000 units through exercise of the over-allotment option) for $5.88 billion. The total amount for these two offerings, $13.35 billion, represents an increase from the $11.9 billion announced on May 12 due to the exercise by the underwriters of the over-allotment options in full.

The sale of fixed income securities totaled $6.9 billion and were issued in three series. AIG issued $4 billion 8.175% Series A-6 junior subordinated debentures; €750 million 8.0% Series A-7 junior subordinated debentures (U.S. dollar equivalent of $1.16 billion); and ₤900 million 8.625% Series A-8 junior subordinated debentures (U.S. dollar equivalent of $1.75 billion).