The U.S. Treasury Department continued its divestiture program of bailed-out American International (NYSE:AIG) stock by announcing an agreement to sell $5 billion in stock owned by the Treasury.

Treasury will sell 163.9 million shares at $30.50 per share according to BloombergBusinessweek, marking the third offering of AIG shares since last May for a total reduction in it share of the company from 70 percent down to 63 percent.

Treasury’s first two offerings were sold off at $29 per share, and needs to average a sale price of $28.72 to break even on their total investment.

As part of their 2008 bail-out, AIG is required to demonstrate access to the capital markets, and repurchase shares of their own stock from the Treasury offerings. AIG will buy $2 billion of this most recent offering,

AIG raised $2.9 billion from the capital markets, and additional monies through divestitures, including the sale of a plane leasing unit and a stake in Hong Kong based AIA Group LTD to aid in the repurchase of the stock.

AIG borrowed $182 billion from Treasury in order to stave off loses from ill-advised losses associated with slumping real estate. AIG has paid back a Federal Reserve credit line, and Treasury converted a preferred stake in the company to a 92% share of the company’s common stock in January 2011.

AIG’s currently owes the Treasury $39 billion.