AIG Loans Another $2 Billion to Airplane-Leasing Unit

American International Group's airplane-leasing company said it's borrowed an additional $2 billion from AIG, tapping into the credit facility that the Federal Reserve Bank of New York has loaned to AIG.

The airplane-leasing company, International Lease Finance Corp., has put up collateral for both the new $2 billion loan and an existing $1.7 billion that AIG loaned the company last March, according to an Oct. 19 filing with the U.S. Securities and Exchange Commission.

ILFC put up a portfolio of aircraft and all related equipment and leases, worth $7.4 billion, plus an additional $10 billion in temporary collateral for the loans. AIG had originally loaned the company $1.7 billion on an unsecured basis.

An AIG spokesperson said the company is not commenting beyond the SEC filing.

Earlier this month, AIG (NYSE: AIG) said it had been offered up to $182.3 billion in federal aid, but has never used the full amount. The bailout works more like a credit card with a $182.3 billion limit, and AIG has never reached that limit, it explained. In fact, the company wants to let people know it only used $120.7 billion, and has begun to pay the government back (BestWire, Oct. 5, 2009).

Most AIG insurance companies have current Best's Financial Strength Ratings of A (Excellent) with a negative outlook.

Shares of AIG's stock were trading at $40.32 a share on the afternoon of Oct. 20, down 2.06% from the previous close.