Canada-based bank CIBC has completed transactions with Aimia and TD Bank Group, under which it sold 50% stake in Aerogold VISA portfolio to TD Bank and signed a 10-year deal with Aimia to issue Aeroplan co-branded travel credit cards.
The bank has, however, retained the Aerogold VISA credit card accounts that were held by clients with higher banking relationships.
Aerogold VISA credit cardholders transitioning to TD will continue to earn Aeroplan Miles on purchases and will be serviced by CIBC until new cards are issued.
The new suite of Aeroplan co-branded credit cards will allow CIBC Aerogold clients a chance to enter Aeroplan’s Distinction member recognition programme that offers flight rewards, bonus mile offers, preferential treatment and other privileges.
The bank has generated over $200m from both the transactions. Additionally, CIBC will receive around $37.5m per year from TD Bank for the next three years.