Toronto-Dominion Bank on Tuesday said it would acquire Nordstrom Inc.'s U.S. Visa and private-label consumer credit card portfolio as part of a long-term deal to become the retailer's exclusive U.S. credit card issuer.

The Seattle-based retailer's existing portfolio totals about $2.2 billion in receivables. Terms of the purchase weren't disclosed.

Toronto-based TD, Canada's second-largest bank by assets and the 10th-largest in the U.S., has also been expanding its market share in credit cards in its home market in recent years. TD became Canada's top credit card issuer in 2013 after Aimia Inc. made it the primary issuer of new cards for the popular Aeroplan travel-reward loyalty program. As part of that 10-year deal, Canadian Imperial Bank of Commerce was obligated to sell about half of its existing Aeroplan portfolio to TD.

The latest move allows Nordstrom to improve its capital efficiency while retaining a close link with customers, the companies said, adding it will be entitled to a "substantial portion" of net revenue from the credit-card accounts. Nordstrom will continue to do the account-servicing for the portfolio and to fund and manage its loyalty programs and Nordstrom debit cards.

Nordstrom is currently assessing plans for the use of the proceeds.

The deal is expected to close in the second half of 2015.

Rita Trichur contributed

Write to Carolyn King at carolyn.m.king@wsj.com

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