HSBC to offload AUD $36bn loan book to Blackstone‑backed vehicle

(Sharecast News) - Banking giant HSBC said on Friday that its Australian arm has agreed to sell a AUD $36bn (�18.82bn) portfolio of home and personal loans to Virgo BidCo, a vehicle owned by funds managed by Blackstone.

HSBC said the consideration would be based on the AUD $36bn base amount, plus adjustments for new originations, interestrate movements and collections up to closing, and will be settled in cash. HSBC said the terms were reached following a competitive auction process.

It said the disposal remains subject to regulatory approvals, including clearance under Australia's foreign investment and banking laws, and signoff from the competition regulator. Closing was expected to take place in the first half of FY27, with a longstop date 12 months after signing.

HSBC expects the sale to generate an immaterial loss of under USD $100m, with proceeds used for general corporate purposes.

The bank also said it will wind down the remainder of its Australian retail business over the next 18 months, incurring around USD $300m in restructuring costs, before consolidating its corporate, institutional, assetmanagement and privatebanking operations into its Sydney branch.

HSBC said the move forms part of its wider simplification strategy, while reaffirming its commitment to growing its institutional franchise across Australia and New Zealand.

As of 1030 BST, HSBC shares were 0.62% higher at 1,596.80p.

Reporting by Iain Gilbert at Sharecast.com

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