AIG $7.5 bln stock, convertibles issue seen Monday

NEW YORK (Reuters) - American International Group (AIG.N: Quote, Profile, Research, Stock Buzz), the world's largest insurer, is expected to raise about $7.5 billion on Monday by issuing common stock and mandatory convertible securities.

The offerings, which AIG announced on Thursday after posting a record $7.8 billion first-quarter loss, are expected to be priced after the market closes on Monday, according to an underwriter.

In total, the company said it planned to raise $12.5 billion. At a later date it plans to issue other securities that combine elements of equity and debt.

Citi and JPMorgan are joint bookrunners for the offerings.

AIG is raising the capital to strengthen its balance sheet, after posting record losses in the last two quarters, largely as a result of write-downs of assets linked to subprime mortgages.

(Reporting by Lilla Zuill, editing by Richard Chang)