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May 23, 2008 at 02:48 PM
American International Group Inc. says strong demand helped it overcome investment market turmoil and raise more capital than it had expected.
AIG, New York, says it has completed raising $20 billion through the sale of common stock, equity units and fixed-income securities.
Originally, AIG had suggested that it might raise $12.5 billion, to cope with exposure to turmoil in the mortgage market and other credit markets.
The fixed-income securities included $4 billion of junior subordinated debentures that pay an interest rate of 8.175%; the equivalent of $1.2 billion in junior subordinated debentures in euros, which pay an interest rate of 8%; and the equivalent of $1.75 billion in junior subordinated debentures in U.K. pounds, which pay an interest rate of 8.625%, AIG says.
