AIG, once the world’s largest insurance company, sold $500m in three-year notes and $1.5bn in 10-year paper on Tuesday, with heavy demand as it offered high yields for an investment-grade company.
The US government prevented AIG from failing during the financial crisis. After AIG completes a recapitalisation deal in the first quarter, it will be 92.1 per cent owned by the US Treasury and will still owe taxpayers about $100bn from its roughly $182bn bailout.
AIG chief executive Robert Benmosche said in November the firm, wanted to tap the debt market in the fourth quarter and the equity market early next year to raise about $3.5bn. Miller called the debt sale a “milestone” for the firm, given it was AIG’s first access to the capital markets at the holding company level since August 2008.