Standard Chartered sells consumer finance businesses in Hong Kong and Shenzhen

Overview:

• Standard Chartered is to sell its consumer finance subsidiaries - PrimeCredit (PCL) and Shenzhen PrimeCredit (SZPC) - in Hong Kong and Shenzhen to a consortium of China Travel Financial Holdings Co, Pepper Australia and York Capital Management Global Advisors.
• The deal will also see the consortium sell on a portfolio of residential mortgages held by PCL to The Bank Of East Asia.
• Both PrimeCredit entities deal in subprime loans, in contrast to the rest of Standard Chartered's Asia retail banking business and this is thought to be one of the reasons why the divestment is taking place.
• JunHe, Paul Weiss Rifkind Wharton & Garrison and Slaughter and May advised Standard Chartered.