BBVA, Spain’s second-biggest bank, on Friday completed one of Spain’s largest sale and leaseback deals after agreeing the €1.15bn ($1.6bn) disposal of almost 950 branches and other properties.

The bank said it would book an extraordinary gain of €830m on the deal, which it would assign to provisions against future bad loans. It is the latest of several similar deals, under which companies sell their own buildings to specialist funds and then rent them back. That deal comes as BBVA prepares a €2bn convertible bond issue.