* To pay around $500 million for ING assets - sources
* ING and Julius Baer decline comment
* Asia sale later due to regulatory issues - sources
* HSBC front-runner for ING's Asian unit - sources
(Adds detail on pricing, background)
By Saeed Azhar
SINGAPORE, Oct 7 (Reuters) - Julius Baer has won the auction to buy the Swiss private banking assets of Dutch financial services group ING for around $500 million, two sources with knowledge of the deal said.
As part of its global restructuring, ING is selling its Asian and Swiss private banking units in what would be the biggest deal in the wealth management industry since the credit crisis began.
The announcement of the sale of the Swiss units is likely to come later on Wednesday, one of the sources told Reuters.
"Yes it is Julius Baer," one of the sources said. "The amount is around $500 million." Julis Baer and ING declined comment.
HSBC and Switzerland's Julius Baer had been seen as the front-runners for the assets. On Tuesday, Julius Baer CEO Boris Collardi told Reuters he expected an outcome to the sale "very soon".
The sale of the Swiss assets came more than a month after most bids for the private banking units went in on Sept. 3. The sale of the Asian assets could take more time because of regulatory issues, sources said.
HSBC is seen as a front-runner for these assets, while Singapore's DBS Group had also bid for the Asian assets, sources have said.
The secretive sale process of the private banking units is part of ING's restructuring drive to sell 6 billion euros to 8 billion euros in assets and exit 10 of the 48 countries where it does business.
It is also involved in negotiations with the European Union over its 10 billion euro state aid package from last October and its 22 billion euro asset guarantee program from last January..
Once ING completes the private banking asset sale, it is not clear what its next target for disposal might be. It has already declared some assets sacrosanct, including properties in its core Benelux market and some Indian and Russian investments.
Some analysts are eyeing its 16 percent stake in the Bank of Beijing as a possible target to raise a relatively easy 1.0 billion euros. (Editing by Anshuman Daga)