HSBC to Sell $25 Billion Australian Loan Portfolio to Blackstone
HSBC has agreed to sell its A$25 billion Australian home and personal loan portfolio to private equity firm Blackstone as the UK-based bank continues to reshape its business and focus on core markets. HSBC said on Friday that Virgo BidCo will acquire the loan portfolio. Virgo BidCo is an entity wholly owned by a fund managed by a Blackstone affiliate. HSBC said it will gradually wind down its remaining retail business in Australia over the next 18 months. The bank’s corporate and institutional banking, asset management and private banking businesses in Australia will be consolidated into its Sydney branch. The UK bank expects to incur about $300 million in related restructuring costs and write-downs.