American International Group Inc. (AIG) is selling part of its stake in Hong Kong-based AIA Group Ltd. to raise about $6 billion to help the U.S. insurer repay a huge federal government bailout, Reuters reported.

AIG is looking to place some 1.7 billion AIA shares in a range of HK$27.15-27.50 per share, a discount of up to 7 percent to Friday’s AIA closing price, according to a term sheet seen today by Reuters.

The shares will go to institutional investors, and AIG expects to use the net proceeds to reduce the balance due to the U.S. Treasury Department’s preferred equity interest in a special-purpose vehicle in which AIG holds the AIA shares.

The U.S. Treasury owns 77 percent of AIG following a $182 billion bailout in the wake of the 2008 global financial crisis. AIG holds around a one-third stake in AIA which, at Friday’s close, was worth $14.9 billion.