RBS in £5bn sale of leasing business

Taxpayer-funded Royal Bank of Scotland (RBS) saw its shares climb five per cent yesterday after announcing its biggest ever single disposal – the sale of its aircraft leasing business for nearly £5bn.

By The Newsroom

Published 18th Jan 2012, 06:00 BST

The market value of RBS, which is 83 per cent state-owned, climbed around £800m to £15.2bn after it agreed to sell Dublin-based RBS Aviation Capital to Japanese bank Sumitomo Mitsui for 7.3bn US dollars (£4.7bn).

While its share price is still 40 per cent lower than it was a year ago, and at 25.4p nearly half the 50p price tag paid by the Government for its stake, any gains will be welcomed by both the Treasury and the taxpayer.

Shares are up 16 per cent since RBS revealed its plans for its investment arm Global Banking and Markets, which will include 3,500 job cuts and the closure or sale of several businesses.

RBS Aviation Capital was established in 2001 after RBS acquired International Aviation Management Group and is the world’s fourth largest aircraft leasing company. The business employs 69 specialists based in Dublin and has eight other locations in Europe, US and Asia.

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