American International Group (AIG) has entered into 364-day and 3-year Bank Credit Facilities totaling $3bn split evenly between the two. Chartis has also entered into a 1-year $1.3bn letter of credit facility. 36 banks participated in the facilities.

AIG said that the facilities will be available upon the closing of the previously announced recapitalization plan with the US Department of the Treasury, the Federal Reserve Bank of New York and the AIG Credit Facility Trust.

The signing of the AIG and Chartis facilities follows AIG’s return to the debt market earlier this month, at which time AIG raised $2bn selling senior unsecured notes and also established a $500m contingent liquidity facility after more than a two-year absence from these markets.

AIG CEO Robert Benmosche said that these credit facilities, combined with the debt offering and contingent liquidity facility, demonstrate that AIG has momentum and has made substantial and impressive progress this year.

"As we approach year’s end, we believe we are close enough to completing our recapitalization plan that we can see the finish line," Benmosche said.

In addition, over the last six months AIG sold an aggregate of $2bn in debt, including $500m in three-year notes and $1.5bn in 10-year notes on 2 December and established a $500m contingent liquidity facility on 15 December.

AIG raised $37bn through the Alico sale and AIA initial public offering earlier this fall and entered an agreement to sell its AIG Star and AIG Edison life insurance companies for $4.3bn on 30 September.

On September 30, AIG revealed the recapitalization plan to repay the Federal Reserve Bank of New York in full, facilitate the government’s ultimate exit from AIG, and repay the American taxpayer.