American retailing company Target Corp. announces its agreement on the sale of its existing credit card portfolio in the U.S. to Canadian Toronto-Dominion Bank in a 7-year deal.
The credit card portfolio has an outstanding balance of 5.9 billion U.S. dollars, which would allow the Canadian bank to become the sole issuer of Target-Branded Visa and private label credit cards to Target customers in the U.S.
Target's decision came after it announced its plan for unloading the credit card business, which has seen growth as the retailer started offering discounts and free online shipping orders to consumers.
Reportedly, Target is expected to use most of its earnings from deal to reduce its pending debts.
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