Spain's Telefonica (TEF) has reached an agreement with investment firm Bain Capital to sell Atento Call Center for 1 billion euro ($ 1.3 billion) as part of plan to sell assets and cut debt.

Previously, Spanish telecom operator failed in its attempt to list Atento in 2011, Reuters has reported.

Telefonica is trying to close the sale before end 2012 as it needs to raise funds between 7 billion and 8 billion euros till 2015, to cope with debt repayments.

Telefonica has agreed to provide Bain 110 million euros, a statement to the market regulator noted, Reuters has pointed out.

Telefonica is also spinning off its German O2 subsidiary and is mulling listing in Latin America.

Earlier, in the month of July, Bloomberg reported how Bain Capital, co-founded by the U.S. presidential candidate Mitt Romney backed companies including business-software provider MYOB Ltd and cinema chain AMC Entertainment.

Apparently, the private equity firm whose investors include Yale University and government of Singapore was said to be raising $6 billion fund for additional deals, Bloomberg has stated.

Earlier, several European operators had shed assets to scale down debt owing to heavy regulation in home country and slowing growth in emerging markets.

Reportedly, France Telecom sold units in Switzerland to Apax for 1.6 billion euros, while Netherlands' Royal KPB BV sought buyers for Belgian business and wireless towers in Germany.