ADIA takes long-term view on Citigroup

Abu Dhabi: Abu Dhabi Investment Authority, the world's biggest sovereign wealth fund, has a "long-term view" of its investment in Citigroup, so is untroubled by the recent decline in its share price.

"I think ADIA has a long-term view for these stakes," said Sebastien Henin, fund manager at Abu Dhabi Investment Co, a unit of ADIA in Paris. "Even if they face some losses, it is not a problem for them because they have time."

Market value

Citigroup has lost 44 per cent of its market value since ADIA took a 4.9 percent stake in the bank for $7.5 billion in November 2007. Abu Dhabi acquired securities that convert to stock and yield 11 per cent a year, according to Bloomberg data.

"They don't have to convert," said Giyas Gokkent, head of research at National Bank of Abu Dhabi, the emirate's largest bank by market value. "I think it's a good deal. Right now they are getting a fixed return of 11 per cent on their investment."