back Back

Barclays to sell $1.1b worth US credit card debt to Blackstone

By Gloria Methri

February 29, 2024

  • Alternative Investment
  • Asset Financing
  • Barclays
Share

Barclays, Blackstone, Private Equity, Credit Card Receivables, Credit Card Debt, Lending, FinTech, UKBarclays has agreed to sell approximately $1.1 billion worth of credit card debt in the US to private equity firm Blackstone, to expand its lending capacity and reduce balance sheet risk.

Barclays Bank Delaware (BBDE) has signed the agreement with insurance accounts managed by Blackstone’s asset-based finance group, to sell the credit card debt. As part of the transaction, BBDE will enter a long-term strategic sale and servicing arrangement with Blackstone, retain the legal title for the credit card accounts and continue to service them for a fee.

Blackstone’s investment will be made entirely on behalf of the firm’s insurance clients. Barclays will also fund the transaction alongside Blackstone’s insurance accounts. The transaction, subject to certain conditions, is expected to be funded in Q1 2024.

The transaction is expected to release approximately GBP£1.0 billion of RWAs on a post-internal ratings-based approach. BBDE intends to use the proceeds of the sale to fund its lending activities.

Anna Cross, Group Finance Director at Barclays, said, “During our Investor Update, we said that we would leverage strategic partnerships to execute risk transfer agreements to reduce capital requirements. I am delighted to announce this first agreement in our US cards book.”

“We are pleased to partner with an industry leader like Blackstone on this transaction that will help fund lending activities and support the long-term growth ambitions for our US Consumer Bank,” said Denny Nealon, CEO of Barclays US Consumer Bank and BBDE. “BBDE will continue to service the accounts, providing cardmembers with the high level of service they have come to expect.”

Robert Horn, Global Head of Infrastructure & Asset Based Credit at Blackstone, said, “This collaboration demonstrates how we are supporting leading financial institutions with large-scale, long-term, efficient capital solutions in the asset-based finance markets. Barclays has a premiere franchise in structured products and consumer banking, and we look forward to working with them in the coming years to grow the partnership.”

Previous Article

February 29, 2024

5 FinTech platforms offering SME Loans in Australia

Read More
Next Article

February 29, 2024

Volt secures EMI licence to offer e-money accounts in the UK

Read More








IBSi Daily News Analysis

Web3, Indian market

April 16, 2024

Alternative Investment

Explosive growth in Web3: UAE and MENA region poised to lead crypto, DeFi, and Metaverse revolution

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

FinbotsAI set to boost credit risk management for Myanmar’s KBZ Bank

Read More

Today

India’s Veefin expands Supply Chain Finance & Digital Lending in Africa with Computech Limited

Read More

Today

Liberis and Shop Circle partner to launch e-commerce SME funding

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023