Blackstone to Acquire AUD36 Billion Australian Home and Personal Loans from HSBC

Blackstone to Acquire Massive Australian Loan Portfolio

HSBC Bank Australia is set to sell its Australian home and personal loan portfolio valued at approximately AUD36 billion (US$25 billion) to Virgo BidCo Pty Ltd, an entity wholly owned by funds managed by affiliates of Blackstone Inc. The deal, announced on 31 July 2026, underscores HSBC’s strategic pivot away from retail lending in Australia.

The portfolio sale, formalised through an Asset Sale and Purchase Agreement, is expected to complete in the first half of 2027, pending regulatory green lights including approval under the Foreign Acquisitions and Takeovers Act, consent from the Australian Treasurer, and clearance from the Australian Competition and Consumer Commission. Operational readiness to migrate the portfolio will also be a gating factor.

Servicing and Management Transition for Securitised Loans

Not all of HSBC’s loan assets are included in the sale. Certain loans securitised via the Lion Series 2024-1 Trust (the Lion Portfolio) will remain outside the transaction. However, HSBC plans to resign as servicer and manager of the Lion Portfolio, appointing Pepper Money Limited as the new servicer and Perpetual Nominees Limited as successor manager. Importantly, HSBC will retain a net economic interest of at least 5% in the Lion Trust, maintaining a stake in the securitised assets.

This transition will be conducted in compliance with contractual obligations and regulatory requirements, including coordination with the Lion Trust’s trustee and noteholders.

HSBC’s Australian Retail Business to Wind Down

The sale is part of a broader plan to wind down HSBC Australia’s retail banking operations over the next 18 months. Post wind-down, HSBC will consolidate its Corporate and Institutional Banking, Asset Management, and Private Banking businesses into the Hongkong and Shanghai Banking Corporation Limited Sydney Branch. This consolidation aims to simplify HSBC’s footprint in Australia while continuing to invest in its institutional and private banking franchises across Australia and New Zealand.

For Blackstone, acquiring such a sizeable loan portfolio represents a significant expansion of its Australian credit assets, subject to the usual regulatory hurdles and integration challenges.

While the transaction terms beyond the portfolio’s book value remain undisclosed, the deal highlights the ongoing reshaping of the Australian banking landscape, with global banks recalibrating their local strategies amid regulatory scrutiny and competitive pressures.