The second largest German bank has shed a large hunk of non-performing Spanish CRE loans in a $960M (EUR 710 M) deal.

FRANKFURT—The second largest German bank has shed a large hunk of non-performing Spanish CRE loans in a $960 M (EUR 710 M) deal. Commerzbank has sold the loans to an unnamed international concern in order to lower its load of bad debt and to raise capital.

“We are pleased that through these transactions it has been possible to reduce non-performing commercial real estate commitments in a difficult market in a value preserving way,” said board member Sascha Klaus, in a statement released Thursday. “We will consistently continue to fulfill our asset reduction assignment and focus on transactions that meet our stringent requirements, arising from present market opportunities.”

With these transactions Commerzbank says it has halved the volume of non-performing loans in the Spanish commercial real estate portfolio from approximately $2.72 billion (EUR 2 billion) to around ($1.36 billion (EUR 1 billion) since the beginning of 2013.