The Government of Singapore Investment Corporation has decided to retain its remaining interest in Citigroup after it again reduced its stake in the bank last week, Dow Jones reports.

The sovereign wealth fund's previous 4.9 per cent stake in Citigroup has been reduced to around 4 per cent after the bank's most recent capital raising activity to generate payback funds for its $20 billion federal debt. GIC was among those that had provided aid to the bank after it was hit by the global financial crisis. It had invested $6.88 billion.

"As a shareholder, GIC views Citigroup's plan to repay the US government as a positive development in the company's recovery," a spokesperson for the fund was quoted as having said. GIC reportedly said that the reason why it is not walking out of the investment completely is that it is confident on the bank's long term prospects.

Citi was able to raise around $17 billion from last week's share sale, plus an additional $3.5 billion from the sale of debt convertible to shares in three years.

Earlier in September, GIC had reduced its interest in Citigroup to below 5 per cent and generated a $1.6 billion profit from the transaction.