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Saudi Prince, Chinese Bank to Back Citigroup

Posted Jan 11, 08 6:02 PM CST in Business 

(Newser) – A Saudi prince and one of China's government banks are expected to invest billions in Citigroup, the Wall Street Journal reports today. The China Development Bank is expected to pump in $2 billion, sources said; the amount billionaire Prince Alwaleed bin Talal would front is yet to be determined, but would need to be below 5% of Citigroup's $140 billion value to avoid regulatory issues.

Citigroup, facing a $15 billion fourth-quarter write-down as a result of the mortgage crisis, is no stranger to foreign investment, having taken $7.5 billion from Abu Dhabi's investment arm last month. The bank is hoping to raise $8-$10 billion overall from investors; the deals with Alwaleed and the CDB aren't yet official and could still fall apart, the Journal notes.

Source Wall Street Journal

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A Citibank office is shown on Tuesday, Nov. 27, 2007 in New York. The Abu Dhabi Investment Authority will invest $7.5 billion in Citigroup, offering the nation's largest bank needed capital to offset...   (Associated Press)
Pricnce Alwaleed bin Talal bin Abdulaziz Alsaud, centre, Chairman of Kingdom Holding company of Saudi Arabia signs for an Airbus A380 , for his personal use, with Tom Enders, sitting left, President...   (Associated Press)
One month after the terrorist attacks on the World Trade Center, Prince Alwaleed Bin Talal of Saudi Arabia, right, is escorted by then-New York Mayor Rudy Giuliani at the site of the former towers in...   (Associated Press)
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Citigroup  • Abu Dhabi Investment Authority  • China Development Bank



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