US-based insurance company AIG has managed to raise $20 billion in a fundraising attempt, which involved a series of equity and debt issues, The Telegraph has reported.
The insurance company is said to have raised the amount, which is much higher than its expectations, in just 10 days. The company had announced a fundraising step following its disastrous results in the last quarter, which reported a net loss of $7.81 billion after taking a $13.1 billion hit on the back of sub-prime related charges and investment losses.
According to Martin Sullivan, the company’s CEO, the 60% increase in the company’s planned capital raising will now enable the company to invest in and support future growth. The additional funds will also reportedly strengthen AIG’s position and prepare it for any further shocks in the capital markets.
To recover the company from the heavy losses, Mr Sullivan reportedly plans to cut costs and sell non-core businesses. However, the company plans to continue investing in parts of its business that still show signs of growth, the aircraft leasing, foreign life and retirement arms in particular.