LONDON (dpa-AFX) - HSBC Holdings PLC (HSBC, HSBA.L, HBC1.DE, HSHD.SI, 0005.HK) said on Friday that its indirect, wholly-owned subsidiary, HSBC Bank Australia Limited, has inked a deal pursuant to which Virgo BidCo Pty Ltd will acquire a portfolio of Australian home loans and personal loans of HSBC Australia.
Virgo BidCo is wholly owned by the funds managed by affiliates of Blackstone Inc.(BX).
The total consideration for the sale is equal to a base amount of A$36 billion and an amount to reflect originations in the portfolio from January 31 up to and including the date falling 14 days after the date of the asset sale and purchase deal. The consideration will be paid in cash.
The outstanding balance of the portfolio was A$36 billion as of December 31, 2025. The portfolio has a total book value of around A$36 billion as of March 31.
The transaction is expected to be closed in the first half of 2027. The net proceeds received from the sale are expected to be used for general corporate purposes of the HSBC Group.
The sale is anticipated to generate an immaterial loss of less than US$0.1 billion for HSBC Group by the first half of 2027.
The sale follows a strategic review of HSBC Australia's retail business and forms part of the ongoing simplification of the HSBC Group.
The remainder of HSBC Australia's retail business will be wound down in a phased manner over the next 18 months. Following this, HSBC Australia's Corporate and Institutional Banking, Asset Management and Private Banking businesses in Australia will be consolidated into The Hongkong and Shanghai Banking Corporation Limited Sydney Branch, simplifying HSBC's entity footprint.
HSBC expects to incur US$0.3 billion in associated restructuring costs and write-offs.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
