Citigroup plans $3.5 billion facility to support SIVs
NEW YORK (Reuters) - Citigroup Inc (C.N) said on Tuesday it plans to provide a $3.5 billion facility to support six of the seven structured investment vehicles it took onto its balance sheet last year to shore up their debt ratings and protect creditors.
The facility, if tapped, would provide additional capital should the market value of junior notes in the SIVs approach zero, Citigroup spokesman Jon Diat said in a statement.
Citigroup in December brought $49 billion of SIVs onto its balance sheet, after a lack of investor demand derailed an attempt to create a "super-SIV" to help sell those securities.
The largest U.S. bank said at the time it would provide a support facility to the SIVs and the size and terms would reflect market terms. It also said the size would vary over time depending on factors, including the SIVs' repayment of maturing debt.
(Reporting by Jonathan Stempel; Editing by Carol Bishopric/Andre Grenon )
