UPDATE 1-Intrum to sell large chunk of investment portfolio to Cerberus for $785 mln

(Adds details from the statement and background paragraph 2 onwards)

Jan 22 (Reuters) - Intrum said on Monday it would sell a large portion of its investment portfolio to affiliates of Cerberus Capital Management for 8.2 billion Swedish crowns ($785.41 million).

Intrum said it would use the proceeds from the transaction to reduce its debt and will retain a 35% stake in the purchasing entity.

The company also said it expects to book an accounting loss of 845 million Swedish crowns due to the transaction, aimed at helping Intrum meet its debt maturities up to 2025 without having to rely on the markets.

"This transaction is an important step that will allow us to de-lever our balance sheet, while maintaining exposure to the asset and the full servicing perimeter," Intrum CEO Andrés Rubio said.

Intrum is Europe's biggest manager of bad loans with a presence in over 20 markets across the continent.

($1 = 10.4404 Swedish crowns) (Reporting by Kanjyik Ghosh; Editing by Shilpi Majumdar and Krishna Chandra Eluri)