HSBC to sell $25bn Australian loan portfolio to Blackstone

HSBC Blackstone Australian loan portfolio retail banking exit Pepper Money

HSBC Holdings has agreed to sell its Australian home and personal loan book, valued at about A$36 billion (roughly US$25 billion), to private‑equity firm Blackstone. The transaction, financed by Blackstone’s credit, opportunistic and real‑estate debt funds, is slated to close in the first half of 2027 pending regulatory approval. Pepper Money will take over servicing the loans, handling repayments and customer enquiries.

The sale is part of HSBC’s plan to exit retail banking in Australia. Over the next 18 months the bank will wind down transaction accounts, savings, term deposits, credit cards and foreign‑currency products, while retaining its corporate, institutional, private‑banking and asset‑management operations in the country. HSBC expects the deal to generate a pre‑tax loss of less than US$100 million and to incur restructuring and foreign‑exchange costs of about US$300 million each. The deal, described by Blackstone as the largest mortgage‑portfolio sale in history, will affect roughly 91,000 Australian mortgage customers.

Entities: Blackstone Group · Blackstone Group Inc. · Dan Leiter · Georges Elhedery · HSBC Holdings plc · Pepper Money · Pepper Money Limited

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[○ 1 SOURCE] The sale will affect approximately 91,000 Australian mortgage customers. (customer impact)
[● 5 SOURCES] HSBC will retain its corporate, institutional, private‑banking and asset‑management businesses in Australia after the retail exit. (remaining operations)
[● 9 SOURCES] The transaction is expected to close in the first half of 2027, subject to regulatory approval. (closing timeline)
[● 9 SOURCES] Pepper Money will act as the servicer for the loan portfolio after the sale. (servicing arrangement)
[● 5 SOURCES] HSBC expects the sale to generate a pre‑tax loss of less than US$100 million and incur restructuring and foreign‑exchange costs of about US$300 million each. (financial impact)
[● 9 SOURCES] HSBC will wind down its Australian retail banking operations over the next 18 months, closing accounts, credit cards and related products. (retail exit plan)
[● 3 SOURCES] Blackstone described the transaction as the biggest mortgage‑portfolio sale in history. (size claim)
[● 9 SOURCES] HSBC agreed to sell its Australian home and personal loan portfolio valued at A$36 billion (US$25 billion) to Blackstone. (sale value and parties)