Barclays PLC ("Barclays") and Blackstone Credit & Insurance
(“Blackstone”) today announced that Barclays Bank Delaware ("BBDE")
has entered into an agreement with insurance accounts managed by
Blackstone’s Asset Based Finance group, to sell approximately
US$1.1 billion of currently outstanding credit card receivables
(the “Transaction”) in relation to a defined set of
Barclays-branded credit card accounts in the United States of
America (the “Accounts”). This is the first in a series of
activities Barclays plans to conduct to reduce its risk-weighted
assets (RWAs) and create additional lending capacity for BBDE.
As part of the Transaction, BBDE will enter into a long-term
strategic forward flow sale and servicing arrangement with
Blackstone related to the Accounts. Blackstone’s investment will be
made entirely on behalf of the firm’s insurance clients.
The Transaction remains subject to certain conditions and is
expected to fund in Q1 2024.
Under the terms of the Transaction, BBDE will retain legal title
in respect of the Accounts and BBDE will continue to service the
Accounts for a fee. Barclays Bank PLC will invest into the
Transaction alongside Blackstone’s insurance accounts.
The Transaction is expected to release approximately GBP£1.0
billion of RWAs on a post internal ratings-based (IRB) approach
basis at the Barclays Group consolidated level(1). BBDE intends to
use the proceeds of the sale to fund its lending activities.
Barclays Bank PLC, acting through its Investment Bank, served as
exclusive structuring advisor to Blackstone in the transaction, to
which it also served as risk retainer and liquidity facility
provider.
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’re 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.”
(1) Subject to notification to and possible review by the
Prudential Regulation Authority; the term “Barclays Group” refers
to Barclays PLC together with its subsidiaries.
About Barclays
Our vision is to be the UK-centred leader in global finance. We
are a diversified bank with comprehensive UK consumer, corporate
and wealth and private banking franchises, a leading investment
bank and a strong, specialist US consumer bank. Through these five
divisions, we are working together for a better financial future
for our customers, clients and communities. For further information
about Barclays, please visit our website home.barclays
About Blackstone
Blackstone is the world’s largest alternative asset manager. We
seek to deliver compelling returns for institutional and individual
investors by strengthening the companies in which we invest. Our
more than $1 trillion in assets under management include global
investment strategies focused on real estate, private equity,
infrastructure, life sciences, growth equity, credit, real assets,
secondaries and hedge funds. Further information is available at
www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter),
and Instagram.
Forward-looking statements
This announcement contains certain forward-looking statements
within the meaning of Section 21E of the US Securities Exchange Act
of 1934, as amended, and Section 27A of the US Securities Act of
1933, as amended, with respect to the Barclays Group. Barclays
cautions readers that no forward-looking statement is a guarantee
of future performance and that actual results or other financial
condition or performance measures could differ materially from
those contained in the forward-looking statements. Forward-looking
statements can be identified by the fact that they do not relate
only to historical or current facts. Forward-looking statements
sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’,
‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’,
‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of
similar meaning. Forward-looking statements are based on the
current beliefs and expectations of Barclays’ directors, officers
and employees and are subject to significant risks and
uncertainties. Actual outcomes may differ materially from those
expressed in the forward-looking statements. In setting its targets
and outlook for the period 2024-2026, Barclays has made certain
assumptions about the macro-economic environment, including,
without limitation, inflation, interest and unemployment rates, the
different markets and competitive conditions in which Barclays
operates, and its ability to grow certain businesses and achieve
costs savings and other structural actions. Additional risks and
factors which may impact the Barclays Group’s future financial
condition and performance are identified in Barclays PLC’s filings
with the US Securities Exchange Commission (“SEC”) (including,
without limitation, Barclays PLC’s Annual Report on Form 20-F for
the financial year ended 31 December 2023 which is available on the
SEC’s website at www.sec.gov). Subject to Barclays’ obligations
under the applicable laws and regulations of any relevant
jurisdiction (including, without limitation, the UK and the US), in
relation to disclosure and ongoing information, Barclays undertakes
no obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240227040694/en/
For further information, please contact:
Barclays Marina Shchukina,
Investor Relations +44 (0) 7385 142 673 Jon Tracey, Media Relations
(U.K.) +44 (0)755 221 4868 Matthew Fields, Media Relations (U.S.)
+1 302 255 7807 Matthew.Fields@barclays.com
Blackstone Kate Holderness
+1 917 318 6818
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