Part-nationalised British bank Lloyds has agreed to sell a 500 million pounds ($792.4 million) portfolio of mostly UK leveraged loans to private equity firm Bain Capital's Sankaty Advisors unit, said sources with knowledge of the matter.

Lloyds Banking Group declined to comment on the situation, while officials at Bain Capital's London office could not be immediately reached for comment. The deal was first reported in the Financial Times.

Lloyds has been steadily selling off non-core assets as part of a restructuring to strengthen its financial position, and it is also looking to sell a $10 billion portfolio of shipping loans, industry sources have said.

Sankaty Advisors LLC is Bain Capital's credit affiliate. The company's website states that it has around $15.5 billion in assets under management.

($1=0.6310 British pounds)

(Reporting by Sudip Kar-Gupta; and Stephen Mangan; Editing by Mike Nesbit)