Royal Bank of Scotland said last night it has agreed to sell its aircraft leasing division to Japan's Sumitomo Mitsui Banking Corp for $7.3 billion (€5.76 billion).
"Reaching agreement on a deal of this scale in such a volatile market is a significant success for our non-core division and a credit to SMBC," RBS group finance director Bruce Van Saun said in a statement.
"This transaction further evidences our progress in reducing our non-core portfolio and returning the group to a position of strength," he added.
The Dublin-based RBS Aviation Capital was set up in 2001 and has become the fourth largest aircraft lessor in the world, according to RBS. Managed by a staff of 69, it has a fleet of 206 jets which are leased to 65 airlines in 24 countries.
It has commitments to buy another 87 aircraft by 2015, worth $3.7 billion, which will transfer with the business. The sale is expected by the end of the third quarter of 2012.
RBS decided to sell the unit as part of a divestment strategy begun following the bank's bailout by the British government at the height of the financial crisis. British taxpayers now own 83% of the bank.
Sumitomo Mitsui Banking Corp has agreed the deal on behalf of a consortium comprising its parent company, Sumitomo Mitsui Financial Group, and Sumitomo Corp.
