logo
  

Barclays To Buy $3.8 Bln Worth Gap Credit Card Portfolio - Quick Facts

British investment bank Barclays Plc (BARC.L,BCS) announced Friday its agreement to acquire $3.8 billion worth portfolio of U.S. co-branded and private label credit card accounts and receivables issued in partnership with clothing retailer Gap, Inc. (GPS).

In pre-market activity on NYSE, Gap shares were gaining around 8 percent to trade at $28.34.

In a statement, Barclays said Barclays Bank Delaware in the U.S. has entered into an agreement with Synchrony Bank to acquire the portfolio.

The total portfolio consisted of around $3.8 billion of average receivables as at June 2021, with completion of the acquisition expected in the second quarter of fiscal 2022.

The acquisition follows the April 2021 agreement between Gap and Barclays Bank Delaware.

As per the deal, Barclays Bank Delaware will issue co-branded and private label credit cards in the U.S. to Gap customers beginning in second quarter of fiscal 2022.

Under the deal terms with Synchrony Bank, as at June 2021 consideration for the portfolio would have been approximately $3.9 billion.

The acquisition is being financed from Barclays' existing resources.

The deal is estimated to reduce Barclays' CET1 ratio by approximately 20bps upon completion.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT