Belgian bank KBC has agreed the sale of its KBL private banking unit for 1.05 billion euros ($1.42 billion) to Qatari-backed Luxembourg firm Precision Capital, a key disposal it had to make under restructuring plans agreed with the European Commission.

Last year it agreed to sell the unit to Indian family-owned investment firm Hinduja Group for 1.35 billion euros but the deal fell through for regulatory reasons.

KBC said in a statement that the latest deal would release a total of approximately 0.7 billion euros in capital for KBC. It said Precision Capital represents the business interests of a Qatari investor.-Reuters