UPDATE 1-SMFG to buy RBS aircraft-leasing unit for $7 bln-Nikkei

Jan 17 (Reuters) - Sumitomo Mitsui Financial Group Inc (SMFG) said on Monday it had reached a basic agreement with Royal Bank of Scotland to buy its commercial-jet-leasing business, the Nikkei business daily reported.

Sumitomo Mitsui Banking Co, Sumitomo Mitsui Finance and Leasing Co and trading house Sumitomo Corp will team up to buy RBS Aviation Capital for about 550 billion yen ($7.17 billion), the newspaper said.

About 100 billion yen of this will pay for the unit's shares, with the rest going toward debt, the Nikkei reported.

The deal is on track for completion by spring, the daily said.

After this deal, SMFG and Sumitomo will see their jet fleet grow from about 90 to around 340, catapulting their joint aircraft-leasing business from around number 15 in the world to number 4, the Nikkei said.