AIG unit pays back nearly $4b US loan

American International Group’s (AIG.N) aircraft leasing unit ILFC repaid nearly $4 billion of U.S. loans after raising new debt from investors, a source familiar with the matter said on Sunday.

The repayment reduced the principal balance under a Federal Reserve Bank of New York loan to just over $15 billion, its lowest level since the March 2009 restructuring of government aid, the source said.

A previous low of $17 billion was reached in December after AIG gave the Fed preferred interest in two special purpose vehicles created to hold its foreign life insurance business, the source said, declining to be named as the development is not yet public.

International Lease Finance Corp raised $4.4 billion with new debt sales earlier in August.

Chief Executive Robert Benmosche told Reuters in an interview the funds would be used to pay down the Fed’s loans that AIG had taken to prop up the unit.
Source: Reuters