In order to cut its debt, Spanish construction company Sacyr Vallehermoso SA has agreed to sell highway operator, Itinere Infraestructuras SA, to a Citigroup Inc infrastructure fund for 7.9 billion euros, that is, $10 billion. Under the deal, which is dependent on regulatory approval, 8.34 percent of Itinere will be transferred to savings banks from Spain’s Basque region including Caja Vital.

In a filing to regulators, the company said that the sale to Citi Infrastructure Partners will trim Sacyr’s debt to 12.5 billion euros. The company has tumbled 70 percent in Madrid trading this year, the most on Spain’s benchmark IBEX 35 Index, which is down 41 percent over the same period. That gives the company a market value of 2.3 billion euros.

The purchase comprises of 2.87 billion in cash and 5 billion euros of assumed debt. Sacyr said Citi will offer to buy 100 percent of Itinere at 3.96 euros per share. The company will sell a 42.8 percent stake to Citi and another 11.6 percent once the first transaction is complete.

Sacyr also said that Citi had made a separate agreement to resell some Itinere highways in Spain, Portugal, Brazil and Chile to infrastructure companies Abertis Infraestructuras SA and Atlantia SpA.

The transaction excludes Itinere’s stakes in non- highway concessions - such as hospitals or transport hubs - and in eight highways including Madrid South and Madrid Levante. The company said it will acquire those investments for 478.3 million euros.