The Finance Department is preparing the partial divestment of government financial institutions in Metro Rail Transit Corp., operator of the 17-km MRT-3 along Edsa, as early as October.

Finance Undersecretary Rosalia de Leon told reporters that the government was working on the partial divestment of Development Bank of the Philippines and Land Bank of the Philippines in Metro Rail Transit to comply with the conditions of the central bank.

De Leon said Bangko Sentral allowed the government financial institutions to invest in Metro Rail Transit as long as they held on to bonds and not shares of the company.

The government limited its ownership in ailing Metro Rail Transit to 75 percent to minimize the risk of state-run financial institutions.

“DBP and Landbank also need the liquidity to pursue other investments,” she said.

De Leon, who is officer-in-charge of the Finance Department’s International Finance Group, said the government was looking at several options to take out the shares.

She said state-owned National Development Co. could issue bonds guaranteed by the national government in exchange for shares owned by DBP and LandBank in Metro Rail Transit.

Central bank sources earlier said LandBank and DBP received the go-signal to breach their exposure limits after offering an exit mechanism, with NDC as the buyer of their shares. NDC, in turn, plans to privatize the Metro Rail Transit shares.

DBP and LandBank increased their combined shareholdings in the rail firm to 75 percent from 56 percent. The two financial institutions initially acquired a 26-percent stake in December before increasing it to 56 percent as of February.

Metro Rail Transit is majority owned by MRT Holdings Inc., which was originally owned by property giant Ayala Land, Anglo Philippines Holding Corp. of National Bookstore owner Alfredo Ramos, Fil-Estate Management of the Sobrepeña family, Ramcar of businessman Manuel Augustines and Greenfield Development of the Campos family.

Officials declined to divulge details of the sale transaction, citing a non-disclosure agreement.

But sources said the transaction amounted to around $800 million. Those who divested included Ayala Land, Anglo-Philippines, Greenfield Development, Ramcar and Goldman Sachs that took over the interest of the Fil-Estate Group.

The remaining 25 percent were owned by United Coconut Planters Bank, Philippine Bank of Communications and Bank of Commerce.