Courtesy of Benzinga.
BNP Paribas Corporate and Investment Banking announced today that it has signed a definitive agreement to sell its reserve-based lending business in the United States and Canada to Wells Fargo (NYSE: WFC). This transaction comprises $9.5 billion of total loan commitments, including $3.9 billion in funded balances as of December 31, 2011. All of the 36 people currently working in this business in Houston and Calgary will be offered employment at Wells Fargo.
BNP Paribas remains committed to its strong North American platform and its global Energy and Commodities business. The Group will therefore continue to serve its energy clients in North America. In addition, its well-regarded global energy and commodity finance business outside of North America will not be impacted by this transaction.
The sale forms part of BNP Paribas’ global plan to deleverage its balance sheet and reduce its US dollar funding requirements. The transaction will further strengthen BNP Paribas’ financial profile and improve its Common Equity Tier 1 ratio by an estimated five basis points.
The premium paid by Wells Fargo and other specific terms of the transaction are not being disclosed.