UPDATE 1-Spain's Popular agrees sale of debt recovery business

Mon Jan 21, 2013 3:44am EST

Related Topics

* To generate one-off profit of 133 mln euros

* Part of 2-year asset sale plan (Adds details of business plan)

MADRID Jan 21 (Reuters) - Spanish bank Popular has agreed to sell a debt recovery business in Spain to EOS, which is owned by German finance group Otto, as part of its push to raise its capital levels.

The business was valued at 135 million euros ($179 million) and would generate a one-off profit of 133 million euros for the bank, Popular said on Monday.

The largest non-nationalised Spanish bank to fail a so-called "stress test" of the country's lenders last year, Popular said the sale was part of its 2012-14 plan to make 300 million euros in capital gains through asset sales.

Unlike many other Spanish banks, Popular has resisted tapping euro zone bailout funds. It raised 2.5 billion euros in a capital hike in December.

($1 = 0.7524 euros) (Reporting by Sarah Morris; Editing by Paul Day and Mark Potter)

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