Barclays PLC and Blackstone Credit & Insurance have announced an agreement involving the sale of approximately $1.1 billion in credit card receivables by Barclays Bank Delaware (BBDE) to insurance accounts managed by Blackstone's Asset Based Finance group. This transaction pertains to a specific set of Barclays-branded credit card accounts in the United States.

This move is part of Barclays' strategy to reduce risk-weighted assets and increase lending capacity for BBDE. The transaction includes a long-term strategic forward flow sale and servicing arrangement with Blackstone, which will invest on behalf of its insurance clients.

The completion of the transaction is subject to certain conditions and is expected in the first quarter of 2024. Under the terms, BBDE will maintain legal title to the accounts and continue servicing them for a fee. Barclays Bank PLC will also invest alongside Blackstone’s insurance accounts.

The transaction is anticipated to release around £1 billion of risk-weighted assets at the consolidated level of Barclays Group. The proceeds from this sale are intended to support BBDE's lending activities.

Barclays Bank PLC acted as exclusive structuring advisor, risk retainer, and liquidity facility provider for Blackstone in this deal. Anna Cross, Group Finance Director at Barclays, expressed satisfaction with this agreement as part of their strategy to reduce capital requirements through strategic partnerships.

Denny Nealon, CEO of Barclays US Consumer Bank and BBDE, highlighted the partnership with Blackstone as beneficial for funding lending activities and supporting growth ambitions for their US Consumer Bank. Robert Horn from Blackstone emphasized their role in providing efficient capital solutions in asset-based finance markets through this collaboration with Barclays.

The transaction remains subject to regulatory review by the Prudential Regulation Authority.