Citigroup has sold government guaranteed bonds worth 12 billion dollars, which will help the beleaguered entity to boost its balance sheet.
The Financial Times has reported that Vikram Pandit-led Citi has sold "$12 billion of government-guaranteed bonds, the largest issuance since the US authorities agreed to backstop financial companies' short-term debt in November".
Further, the daily noted that the issue surpasses a $10 billion offering by General Electric as the largest bond issue to be guaranteed by the Federal Deposit Insurance Corporation as part of the government's efforts to help the financial sector.
Citi has posted losses for five consecutive quarters, with $8.29 billion of losses in the fourth quarter of last year alone.
Further, the entity has announced that it would be splitting itself into two separate businesses - Citicorp and Citi Holdings.
The report quoting people close to the offering, which was carried out by Citi's own investment bank, said its original size was increased after strong interest from investors.
"Some 225 investors bought into the deal," it said.
Attributing to analysts, the Financial Times in a recent report published online said Citi was likely to use the proceeds to refinance existing debt.
"Analysts expect other banks to issue FDIC-guaranteed bonds in the coming days following the announcement of fourth-quarter earnings," it added.