The arrangement, by the unusual means of the issue of two commercial mortgage backed securities (CMBS), is expected to save the store group£12 million a year.
Sainsbury's will also use some of the cash raised to inject£350 million into its pension scheme.
The CMBS will be secured against 127 supermarkets with an investment value of£3.55 billion, representing about half the net book value of Sainsbury's supermarkets.
'The CMBS structure enables Sainsbury's to raise finance at a lower cost than currently available in the unsecured credit market,' the grocer said.
'The net effect is an estimated saving of up to£12 million a year from 2006/2007.' The arrangement means Sainsbury's retains ownership of the stores, which remain on the retailer's balance sheet.
Sainsbury's chief financial officer Darren Shapland said: 'This improves the long-term funding profile of the business and provides a flexible financing platform for the future, as well as underpinning the Making Sainsbury's Great Again plan.'
As well as making the one-off payment into the pension scheme, Sainsbury's is increasing its deficit payments by£18 million to£38 million a year. The defined benefit scheme is being kept, but members will have the option of increasing contributions by an average of 3 per cent or choosing to receive lower benefits.
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