SEATTLE, United States — Nordstrom completed the sale of its credit card portfolio to TD Bank for $2.2 billion.

The agreement, announced in May, also makes TD Bank USA N.A. the exclusive U.S. issuer of Nordstrom-branded Visa and private label consumer credit cards.

Nordstrom Inc. will continue to fund and manage its namesake rewards loyalty program, debit cards and employee accounts.

The Seattle luxury retailer plans to use $1.8 billion in net proceeds from the sale for dividends and stock buybacks.

Nordstrom also announced that its board approved a special dividend of $4.85 per share that will be paid on Oct. 27 to shareholders of record on Oct. 12.

In addition, the board authorised the repurchase of up to $1 billion of its common stock through March 1, 2017. Nordstrom said that the buyback is in addition to an existing repurchase program that has $591 million outstanding as of Sept. 30 and expires on March 1, 2016.

Nordstrom's stock rose more than 3 percent in after-hours trading on Thursday.