(Adds details about the sale, background)
June 20 (Reuters) - Canadian lender Home Capital Group Inc HCG.TO said on Tuesday it would sell a portfolio of commercial mortgage assets valued at C$1.2 billion ($904 million) to private equity firm KingSett Capital.
The company said proceeds from the sale would bolster its liquidity and reduce the debt it has outstanding on a C$2 billion emergency facility it agreed with the Healthcare of Ontario Pension Plan in April.
Home Capital had said it was pursuing new financing and strategic options, including the possible sale of some assets.
Depositors have withdrawn 95 percent of funds from Home Capital's high interest savings accounts since March 27, when the company terminated the employment of former Chief Executive Martin Reid.
The withdrawals accelerated after April 19, when the Ontario Securities Commission (OSC), Canada's biggest securities regulator, accused Home Capital of making misleading statements to investors about its mortgage underwriting business.
Last week, Home Capital said it had agreed a settlement with the OSC and accepted responsibility for misleading investors about problems with its mortgage underwriting procedures. = 1.3274 Canadian dollars)