This is the first in a series of activities Barclays plans to conduct to reduce its risk-weighted assets (RWAs) and create additional lending capacity for BBDE.
As part of the Transaction, BBDE will enter into a long-term strategic forward flow sale and servicing arrangement with Blackstone related to the Accounts. Blackstone’s investment will be made entirely on behalf of the firm’s insurance clients.
The Transaction remains subject to certain conditions and is expected to fund in Q1 2024.
Under the terms of the Transaction, BBDE will retain legal title in respect of the Accounts and BBDE will continue to service the Accounts for a fee. Barclays Bank PLC will invest into the Transaction alongside Blackstone’s insurance accounts.
The Transaction is expected to release approximately GBP£1.0 billion of RWAs on a post internal ratings-based (IRB) approach basis at the Barclays Group consolidated level(1). BBDE intends to use the proceeds of the sale to fund its lending activities.
Barclays Bank PLC, acting through its Investment Bank, served as exclusive structuring advisor to Blackstone in the transaction, to which it also served as risk retainer and liquidity facility provider.
