ANZ, NAB back Blackstone HSBC loan deal

Blackstone (BX) is proceeding with the acquisition of HSBC Australia’s retail loan portfolio in a deal valued at about A$36 billion. The transaction centers on HSBC’s consumer lending book in Australia, representing a major shift in ownership of a sizeable pool of retail loans.

The deal positions Blackstone (BX) as the new owner of these Australian retail lending assets, with the transaction size underlining the scale of the portfolio being transferred. The focus is on consumer loans, making the financing and servicing arrangements critical to the transaction’s execution.

To fund the acquisition, Blackstone has lined up more than A$30 billion in senior debt. This financing is structured through a privately offered residential mortgage-backed securitisation, using the underlying loans as collateral for the debt raised.

The privately placed RMBS structure channels institutional capital into the deal while retaining the loans within a securitised framework. This approach supports the large funding requirement associated with the A$36 billion portfolio and allows multiple lenders to participate in the capital stack.

ANZ Group and National Australia Bank are among the lenders providing financing for the transaction, making domestic Australian banks key contributors to the senior debt package. Their involvement ties local balance sheets to one of the largest recent transfers of consumer loan assets in the country.

Alongside ANZ and NAB, several international banks are part of the debt stack. These include BNP Paribas (BNPp), Natixis, Mitsubishi UFJ Financial Group, RBC Capital Markets and Standard Chartered (STAN.L), reflecting broad cross-border participation in the financing of the portfolio purchase.

Pepper Money, an Australian non-bank lender backed by KKR (KKR), will provide servicing for the acquired portfolio. This role covers day-to-day customer servicing, including the ongoing administration and management of the retail loans.

Appointing a dedicated servicing partner helps maintain continuity for borrowers as the loans move from HSBC Australia to the new ownership structure. Pepper Money’s responsibilities will focus on operational execution rather than ownership of the underlying assets.