BBVA SA is seeking to sell about €380 million ($444 million) in soured mortgages as it cleans up its balance sheet.

The lender is already holding talks with investors over the portfolio, which includes loans tied to about 3,900 properties in Spain, according to a sale document seen by Bloomberg News. KPMG is the sale adviser on the deal, known as Project Terral.

BBVA is asking investors to submit non-binding bids by the end of January, according to the document. Binding offers are expected by mid-March and the signing of the deal in April.

Representatives for BBVA and KPMG declined to comment.

The non-performing loan ratio for Spain’s second-largest bank was 2.8% at the end of September, down from 3.3% a year earlier. The NPL ratio was slightly higher at BBVA’s Spanish unit, at 3.1%.

BBVA is working on a new strategic plan after its $19 billion takeover bid for Banco Sabadell SA collapsed in October. Management has committed to generate €49 billion in capital in the four years between 2025 and 2028 and to return most of that to shareholders.

Source: Bloomberg