The Royal Bank of Scotland (RBS) has agreed to sell Angel Trains for £3.6 billion to a consortium led by Babcock & Brown.
Angel Trains provides freight and passenger rolling stock in both the UK and continental Europe.
The sale will help the bank bolster its balance sheet, which was hit by the credit crunch and the joint acquisition of ABN Amro.
RBS said: "The sale forms part of RBS' strategy of focusing resource on its core domestic and international banking businesses."
The bank has also put its insurance arm up for sale and this week raised £12 billion in Europe's largest-ever rights issue.
Asset management group Babcock & Brown led the consortium of buyers, which also includes AMP Capital Investors, Deutsche Bank and funds advised by Access Capital Advisers.
Phil Green, chief executive of Babcock & Brown said, "We are delighted to announce this landmark transaction; not only is Angel Trains a very attractive infrastructure asset, but the transaction represents one of the largest acquisitions in Europe in 2008."
In the UK, Angel Trains is one of three rolling stock companies created from the privatisation of British Rail. The firm provides approximately 4,100 passenger train vehicles as well as 280 freight locomotives to passenger and freight operators.
At 10:44 BST this morning, shares in Royal Bank of Scotland were up 1.86 per cent.
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