The three banks backing Prudential’s $35.5bn bid for AIG’s Asian arm said on Thursday that the soveriegn wealth funds of Qatar and Singapore had joined 30 banks in the syndicate to underwrite the UK insurer’s $20bn rights issue.
The Pru, which announced its agreement to buy AIA on Monday, needs to raise the cash from its shareholders to fund the lion’s share of the deal. The group will also issue to AIG $5.5bn of stock, $3bn of convertible notes and $2bn of preferred shares.
AIG’s Asian arm was due to be floated in Hong Kong until the 11th hour when the stricken US insurer’s board was finally persuaded that the Pru could fund a deal. However, that decision left a large number of investors still keen to put money into the combined group.
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