Luxembourg-based Precision Capital said the deal opens up the potential for growth in Europe, Asia and the Middle East and it plans a large recruitment campaign designed to strengthen its level of service to clients.
The Qatari investment group also bought Dexia Banque Internationale a Luxembourg (BIL) for 730m in December last year.
KBL say it will work closely with Precision Capital to tap in to these new international markets.
KBC CEO Johan Thijs said: "This transaction is a major step in the implementation of our updated strategy of focusing on our core bancassurance business in our home markets in Belgium and Central and Eastern Europe (Czech Republic, Slovakia, Hungary, Bulgaria)."
KBC was required to sell KBL as part of a restructuring agreement reached with the European Union’s executive arm, the European Commission (EC).
The transaction includes all KBC’s private banking subsidiaries, as well as KBL’s custody and life insurance businesses.
The headquarters of the KBL brand management team and operation will remain in Luxembourg after the sale.
KBL is one of Europe’s largest onshore private banking groups with affiliated local banks across nine European countries.
Source: Private Banker International