By Razak Musah Baba

LONDON--HSBC Holdings PLC (HSBA.LN) has sold a portfolio of U.S consumer mortgage loans to DLJ Mortgage Capital, Inc., a subsidiary of Credit Suisse Group AG (CS), for $1.50 billion.

The banking and financial services group said the transaction is part of its plan to scale back its consumer mortgage loan business and to sell substantially all of HSBC Finance Corporation's residential mortgage loans.

The proceeds will be used to pay down long-term debt and for general corporate purposes, it said.

HSBC said the sale was made by its subsidiaries, HSBC Finance Corporation and HSBC Bank USA, NA, adding that the disposal was agreed and completed on Feb. 23.

At 1410 GMT, HSBC shares were up 1 pence, or 0.1%, at 666 pence, valuing the company at GBP132.22 billion.

-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

March 07, 2017 09:33 ET (14:33 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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