CLAYTON UTZ and Blake Dawson Waldron advised on the transfer of Bank of Queensland’s credit card business to Citibank, finalised at the end of last month.
The move is part of an agreement for Citibank to provide Bank of Queensland (BoQ) branded cards to its customers.
Clayton Utz acted for BoQ and Blakes partner Jonathan Gordon for Citibank.
Citibank was selected in late 2006 by Bank of Queensland to issue its credit cards following a tender.
The agreement provides the BoQ with back office and marketing support to allow it to grow its card issuing in line with its rapid expansion.
Clayton Utz lead partner Tim Reid said the deal focused “carefully on ensuring a seamless transition for current customers and ensuring that service levels remain consistent with, and support, Bank of Queensland’s high customer service standards to achieve seamless service delivery”.
The credit card business, valued at approximately $260 million, will be transferred to Citibank at the end of May, which will then issue the cards.
Citibank will also operate an onshore call centre to support the cards.
“This arrangement meets the joint goals of securing the best result for BoQ customers and our respective companies,” said Citibank Australia CEO Les Matheson in a statement to the Australian Securities Exchange.
“It is our goal to jointly build a world-class credit card technology platform to underpin BoQs existing credit card portfolio and provide BoQ with an expanded range of credit cards within a cost effective structure.”
Clayton Utz said the transfer of the card portfolio required careful consideration of credit code compliance. The firm’s banking and financing partner Randal Dennings and senior associate Wei-Loong Chen advised on this.
Corporate partner Anna Sharpe and senior associate Clayton Barrett and tax partner David Cominos were also in the Clayton Utz team.