Completion of the Coles credit card transaction with Citi was announced today after the receivables sales agreement relating to Coles’ credit card portfolio was negotiated.
Under the deal, Coles will continue to distribute credit cards under its own brand and, following a transition period, Citi will be the credit card issuer and manage the operations of the credit card portfolio.
Wesfarmers announced the deal in November last year with John Durkan, MD of Coles, asserting the partnership will build a platform for the growth of its credit cards.
“Coles services over one million customers across credit cards and car and home insurance, and we will continue to provide simple and competitively priced products that deliver value to Australian families,” he said at the time.
The portfolio had gross receivables of approximately $945 million as at December 2016.
The net proceeds from the deal will be applied to repay Wesfarmers’ debt.