€422m sale and leaseback deal between Ryanair and RBS

Ryanair has entered into a sale and leaseback agreement for up to 10 Boeing 737-800 next generation aircraft with RBS Aviation Capital a subsidiary of Royal Bank of Scotland.

The 10 aircraft have a total value of $518m (€422m) and will be delivered between December 2003 and March 2004.

Under the terms of the agreement the aircraft will be leased back for seven years.

Ryanair's Chief Financial Officer & Deputy Chief Executive, Howard Millar said: "This agreement further extends our strong relationship with Royal Bank of Scotland Group and their subsidiary Ulster Bank, in which we have a foreign exchange and deposit relationship."

Earlier this year, RBS Aviation Capital earlier organized the finance on eight Boeing 737-800 aircraft under an export-import Bank of US export guarantee credit programme.