Barclays has signed an agreement to acquire a $3.8bn credit card portfolio co-branded with US-based clothing retailer The Gap.

According to a stock exchange filing, Barclays Bank Delaware, a local arm of the British lender, will acquire credit card accounts and receivables from Synchrony Bank.

The deal is expected to close in the second quarter of next year.

The agreement comes months after Gap and Barclays Bank Delaware agreed to issue co-branded and private label credit cards in the US to Gap customers from Q2 2022.

“Under the terms of the agreement with Synchrony Bank, as at June 2021 consideration for the portfolio would have been approximately $3.9bn.

“The exact size of the portfolio and consideration payable will depend on movements in the portfolio up to completion,” the filing added.

Barclays will fund the transaction using existing resources.

Once the deal completes, it is expected to reduce Barclays’ CET1 ratio by approximately 20bps.

According to a Reuters report, Barclays is pursuing a strategy to partner with big brands in a bid to grow its footprint in the US.

Recently, the lender has partnered with several brands including American Airlines, JetBlue and Wyndham Hotels.

Last week, Barclays unveiled plans to invest more than $400m in its Indian arm to ramp up its operations in the country.

The investment will be used to tap the growing corporate and investment banking activity in the country.