Citigroup is a major bank and financial firm in the United States. Five Sovereign Wealth Funds have invested in Citigroup: Abu Dhabi Investment Authority, China Investment Corporation, Kuwait Investment Authority, Government Pension Fund of Norway, and the Government of Singapore Investment Corporation. The KIA sold their stake in December 2009. In press accounts in May 2010, the Qatar Investment Authority was rumored to be interested in acquiring a stake in the bank.
2007-2008 capital raising
On November 26, 2007, Abu Dhabi Investment Authority invested $7.5 billion into Citigroup for 4.9% of Equity Units which will turn into shares between March 15, 2010 to September 15, 2011. The units prices will range from $31.83 to $37.24 per share. Each Equity Unit will pay a fixed annual payment rate of 11%, payable quarterly. ADIA agreed that it will not take more than a 4.9% stake and will not take a role in management or governance. In April 2009, ADIA's stakewas worth just $1.6 billion. It was announced in December 2009 that ADIA is seeking to change the terms of the deal. ADIA, if it doesn't change the terms, is expected to lose billions of dollars. ADIA alleged fraudulent misrepresentation by the leadership of Citigroup. Citigroup won in arbitration in November 2011. ADIA has challenged the ruling.
On January 15, 2008, it was announced that Kuwait Investment Authority, and the Government of Singapore Investment Corporation had both taken stakes in Citigroup. The KIA took a 1.75% stake for $3 billion. The GIC took a 3.70% and paid $6.88 billion. The shares each cost $31.62 per share.
Citigroup, along with the United States government, had encouraged all three SWF investors to convert their preferred shares in the bank into common stock. On February 27, 2009, the GIC announced that it would in fact convert its preferred shares into common stock. The GIC converted it shares at a price of $3.25 a share, almost double the previous closing day's price. The GIC will end up with an estimated 11.1% of total shares. GIC will still have spent $6.88 billion on the stake. The GIC is the second largest investor in Citigroup after the United States government.
The KIA sold their entire stake on December 4, 2009 for $4.1 billion. Based on the purchase price, the KIA made a profit of more then $1 billion.
China Investment Corporation
The China Investment Corporation owns 9,000,000 shares of the company as of December 31, 2009. The stake is valued at $29.790 million. The CIC released this data in their first quarterly disclosure on US equity holdings to the United States Securities and Exchange Commission.
Government Pension Fund of Norway
The Government Pension Fund of Norway held a 0.60% stake in the company as of December 31, 2009. The stake is valued at $557,407,494.
|December 31, 2009||0.60%||0.60%||$557,407,494
According to press accounts, the Qatar Investment Authority is interested in acquiring a stake in Citigroup from shares that the United States government is selling. The US Treasury acquired 7.7 billion shares of Citigroup when it inject capital into the bank in the fall of 2008.