Toronto-Dominion Bank Completes Deal For MBNA Canada's Card Portfolio

December 02, 2011, 9:12 a.m. EST 1 Min Read

Toronto-Dominion Bank has completed an acquisition deal with MBNA Canada.

The $192 billion-asset TD assumed almost all of MBNA Canada's credit card portfolio along with other assets and liabilities, the issuer announced Dec. 1. Bank of America Corp., which purchased MBNA in 2006, announced in August that it was selling its $8.6 billion credit card portfolio in Canada (see story).

Under the deal, TD took over all of MBNA Canada's obligations to Gloucester Credit Card Trust as seller, servicer and administrative agent. TD will delegate some servicing functions to MBNA Canada, BofA and their affiliates during a transition period. TD expects to complete the conversion of the acquisition in about 18 months.

MBNA Canada is the largest MasterCard issuer and fourth largest credit card provider in the country. With the acquisition, TD's Canadian credit card business has about 5.8 million accounts.

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