HSBC Australia to Divest AU$36 Billion Loan Portfolio to Blackstone Affiliate

02:52 AM EDT, 07/31/2026 (MT Newswires) -- HSBC's (HSBA.L) Australian subsidiary agreed to sell a portfolio of home and personal loans in Australia to Virgo BidCo, a subsidiary of funds managed by affiliates of alternative asset manager Blackstone. Under the asset sale and purchase agreement, HSBC Bank Australia will receive a base consideration of AU$36 billion, plus the value of additional originations made during the specified period, subject to interest rate, collection, cost, and other adjustments, according to a Friday release. The agreement includes termination fees payable by either the buyer or HSBC Australia if the transaction is terminated under certain circumstances attributable to the respective party. The deal is slated to close in the first half of 2027, subject to customary conditions. HSBC expects the disposal to result in an immaterial loss of under $100 million by the first half of 2027, with the net proceeds to be used for general corporate purposes. The British lender also plans to wind down the remainder of HSBC Australia's retail business over the next 18 months. The disposal and wind-down are also expected to result in $300 million of foreign currency translation reserve losses being recycled through the income statement, based on the balance as of March 31.