(Bloomberg) -- Barclays Plc is selling $1.1 billion of credit-card receivables to Blackstone Inc. as part of a push by the British bank to clear up space on its balance sheet for more lending. 

Barclays will be able to reduce its level of risk-weighted assets by £1 billion ($1.3 billion) as part of the deal, according to a statement. Under the terms of the agreement, Barclays will continue to service the accounts for a fee. 

“This collaboration demonstrates how we are supporting leading financial institutions with large-scale, long-term, efficient capital solutions in the asset-based finance markets,” Robert Horn, global head of infrastructure and asset-based credit at Blackstone, said in the statement. 

The deal is expected to fund in the first quarter. Blackstone’s investment is being made on behalf of the firm’s insurance clients, while Barclays Bank Plc is also planning to invest into the transaction alongside the firm’s insurance accounts.  

Barclays last week said it’s planning to change the way its various businesses consume the firm’s risk-weighted assets. In all, the company sees risk-weighted assets climbing by £50 billion in the coming years and about £20 billion of that will be allocated to the US consumer bank.

“We said that we would leverage strategic partnerships to execute risk transfer agreements to reduce capital requirements,” Anna Cross, group finance director at Barclays, said in the statement. “I am delighted to announce this first agreement in our US cards book.”

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