Spain's second largest bank BBVA has agreed to put up for sale its Panama unit for US $646 million. Grupo Aval, Colombia's second biggest banking conglomerate, will be making the purchase.

A filing at Spain's stock market regulator showed that the BBVA would be getting US $490 million in cash as well as US $140 million in dividends from its Panamanian division prior to the sale. It would also be getting US $16 million, representing the adjustment for the profits gained from June 1 to November 30.

In a Reuters report, the Spanish lender said it would be raking in Eur 150 million (US $197 million) net profit for the sale.

BVA has recently let go of its Latin America-based assets that are less profitable. The move was made to improve its capital as well as make up for the weakness of its home market that was hit by recession.