AIG receives $4.3 billion credit line to repay bailout money to U.S. government
New York, NY, United States (AHN) – The American International Group (AIG) secured $4.3 billion in bank credit lines which the firm will use to pay back the U.S. government bailout money it received during the global financial crisis.
According to AIG’s regulatory filing made Monday, the credit facility comes from over 30 banks and is being administered by JPMorgan Chase.
The credit lines include two $1.5 billion facilities with terms of three years and 364 days.
Aside from AIG, its property-casualty division Chartis got $1.3 billion credit lines.
Early this month, AIG signed an agreement with Washington for the insurer to repay $20 billion to the Federal Reserve Bank of New York by replacing taxpayer money with private capital and raising more funds through stock sales.
AIG Chief Executive Officer Robert Benmosche said the credit lines is an indicator of market confidence in the company, whose stock rose Monday $2.01 or 3.7 percent to $56.34 at the New York Stock Exchange composite trading.
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