The Brussels-headquartered bank group KBC has agreed to sell its corporate and wealth management subsidiary KBC Bank Deutschland AG, to several investors.

The Brussels-headquartered bank group KBC has agreed to sell its corporate and wealth management subsidiary KBC Bank Deutschland AG, to several investors including affiliates of Teacher Retirement System of Texas, Apollo Global Management, Apollo Commercial Real Estate Finance, and Grovepoint Capital.

KBC Bank Deutschland specialises in corporate banking and financial services for medium-sized German companies, while also providing real estate financing, acquisition finance, institutional asset management and private wealth management services for high net worth individuals.

While the deal is subject to antitrust and regulatory approval, KBC Bank Deutschland will continue all its current business activities, it said in a statement. The sale will free up around €100 million ($134.8 million) of capital for KBC, primarily by reducing risk-weighted assets and will improve the firm’s solvency position with roughly 15 basis points.

In November 2009, KBC agreed to a strategic plan with the European Commission that involves refocusing on retail customers, small and medium-sized enterprises and mid-caps, while reducing risk-weighted assets. As part of this plan, KBC Bank Deutschland was earmarked for divestment.

‘With this deal, the divestment programme KBC has committed to execute is nearly complete. This agreement  also affirms KBC Bank Deutschland’s expertise, and will provide continuity to the bank’s staff and customers. At the same time, the agreement allows KBC to continue supporting its home-market corporate customers requiring financial services for their German business activities,” said Johan Thijs, chief executive officer of KBC Group.

KBC Bank Deutschland is a stand-alone specialised financial institution with a registered total assets of €2.6 billion (around $3.5 billion) at the end of 2012.