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AIG uses ILFC repayment to reduce Fed debt

23 August 2010

AIG's aircraft leasing unit ILFC has repaid nearly $4bn in debt to its parent, after completing a $4.4bn bond sale to investors on Friday and it is now expected to be able to fund itself. AIG has used the payment to reduce its debt to the Federal Reserve.

Read more: american international group aig ilfc

American International Group (AIG)’s aircraft leasing unit International Lease Finance Corporation (ILFC) has repaid nearly $4bn in debt to its parent, after completing a $4.4bn bond sale to investors on Friday and it is now expected to be able to fund itself.

AIG used the money to reduce its outstanding principal balance to the Federal Reserve Bank of New York (FRBNY) revolving credit facility to slightly more than $15bn, not including accumulated interest and fees.

The payment of...


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Catastrophe bond issuance was $4.3bn in 2011. How much new issuance will there be in 2012?

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Quote

If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield