As part of its plan to repay the Federal bailout funds, American International Group Inc. (AIG) is planning to sell its Taiwan credit card business, AIG Credit Card Co. (Taiwan) Ltd, to Far Eastern International Bank, the company said yesterday.

Te company has not disclosed the terms of the deal, which is expected to be completed in the third quarter.

However, according to media, the deal is expected to fetch around 2.3 billion to 3 billion new Taiwan dollars ($70 million to $92 million).

Meanwhile, the troubled financial giant is also placing on auction its Taiwanese life insurance unit Nan Shan Life Insurance Co.

Several private equity firms, including the Carlyle Group, Kohlberg Kravis Roberts & Co., Primus Financial Holdings Ltd., Cathay Financial Holding Co., Chinatrust Financial Holding Co., Fubon Financial Holding Co., Shin Kong Financial Holding Co., Mega Financial Holding Co., Affinity Equity Partners Ltd., and MBK Partners Ltd. are expected to take part in the auction on 03 July.

The unit is expected to bring in $2 billion.

Nan Shan raised $1.45 billion in a rights offer last year to avoid slipping below a regulatory capital requirement.

AIG is on a selling spree to repay the government after it received a bailout totaling about $180 billion from the US administration under the Treasury Department's Troubled Asset Relief Programme (TARP).

It has already sold a handful of units; these include its auto unit, private banking arm, and two life insurance businesses. (See: AIG sells off auto unit for $1.9 billion / AIG offloads private banking arm for $254 million / Munich Re to buy AIG unit for a bargain price of $742 million / Chinese consortium in talks to buy AIG's Asian assets )

Last week, AIG set plans to spin off two life insurance subsidiaries, American International Assurance Co. (AIA) and American Life Insurance Co. (ALICO) for initial public offerings (IPOs) as part of a plan to repay $25 billion of debt to the government. (See: AIG plans IPO of arms to repay $25 billion debt)