Belgium to sell 20% stake in Belfius bank in private placement

BRUSSELS, June 10 (Reuters) - The Belgian government plans to sell a 20% stake in retail bank Belfius via a private placement, worth about €2 billion ($2.3 billion), Finance Minister Jan Jambon told a parliamentary committee.

"An IPO is a longer process that is, moreover, more complex and even more dependent on market conditions, certainly in a period of market instability and volatility, such as the period we find ourselves in today," Jambon told lawmakers in the lower house on Tuesday.

"The goal is to attract a private investor with the necessary experience who can actively contribute to Belfius's strategy and business plan," he added.

Financial markets value the bank at about €10 billion, he said.

The government began the process to sell the stake in late 2025 as it seeks to cut debt while increasing defence spending.

Belfius was created after the state bought the Belgian banking arm of Franco-Belgian lender Dexia in 2011 for €4 billion following the financial crisis.

Jambon said the state's return was already positive thanks to dividends paid since the acquisition. Belfius has paid €1.5 billion in the past two years alone, he said.

In March, Reuters reported that Amsterdam-listed private equity fund CVC was considering buying the stake.

Jambon said CVC's interest was a "good thing", though he had not had direct contact with it .

CVC and Belfius did not immediately respond to requests for comment.

($1 = 0.8655 euros)

(Reporting by Inti Landauro. Editing by Philip Blenkinsop and Mark Potter)