Citigroup Corp. announced a finalized deal with the U.S. government on Wednesday that could add up to $58 billion in common equity to the company, with chief executive Vikram Pandit saying the move would make the bank among the best capitalized in the world.

Citigroup Corp. said it will launch its exchange offers for publicly held convertible and non-convertible preferred and trust preferred securities.

Under the agreement, the U.S. government will exchange a portion of its preferred securities with an aggregate liquidation value of up to $25 billion for interim securities and warrants and its remaining preferred securities for trust preferred securities.

Citi would convert up to $58 billion of preferred stock and trust preferred securities into common shares if all holders of convertible and non-convertible preferred and trust preferred securities holders participate in the exchange offers.

Following completion of the exchange offers, Citi will be among the best capitalized banks in the world,” Citigroup CEO Vikram Pandit said in a released statement. He said the company’s employees had ‘worked tirelessly’ to help the bank take control of its balance sheet and expenses.

Citigroup Chairman Richard Parsons said Pandit had “clarified” the company’s strategy by setting up the Citicorp/Citi Holdings plan and “has taken the tough decisions to downsize the company and cut expenses significantly. Once this exchange offer is completed we will also have addressed Citi’s financial stability. We Have confidence in our management and the future of our institution.”