TD Bank Group is picking up the U.S. credit card portfolio of Target Corp. as part of a broader relationship with the retailer.

The seven-year agreement will also have TD Bank (TSX:TD) become the exclusive issuer of Target-branded credit cards in the United States.

The bank says Target’s credit card business has a gross outstanding balance of US$5.9 billion.

The bank added that the partnership will help it reach its adjusted earnings target of US$1.6 billion for its U.S. personal and commercial banking business in 2013.

The move comes as the U.S. retailer prepares to enter the Canadian marketplace next year.

Minneapolis-based Target (NYSE:TGT) plans to open 124 stores across Canada starting in March and April 2013.