The Royal Bank of Scotland (RBS) has agreed to sell its US and Canadian loan commitments to Japan's Mizuho Bank, part of the Mizuho Financial Group, in a deal worth about $3bn (£1.9bn, €2.6bn).

RBS, on 26 February, said the portfolio being sold to Mizuho comprises $36.5bn of loan commitments, including $3.2bn of drawn assets as of 31 December 2014.

The transaction is expected to close before the end of the second-quarter of 2015.

RBS said in a statement: "The transaction is aligned with the strategic direction RBS has announced today for its Corporate & Institutional Banking business, which will focus mainly on UK and Western European customers, built on existing product and service strengths.

"RBS will remain engaged in the US, serving a select group of North American clients with strong links into the UK.

"The cash consideration... would be approximately $3.0bn, generating a loss on disposal of $0.2bn. Actual cash consideration and loss will depend upon settlement date portfolio balances.

"Sale proceeds will be used for general corporate purposes."

RBS CEO Ross McEwan commented: "Today's agreement with Mizuho marks a further step towards delivering the strategy we set out in 2014 for our Corporate and Institutional Banking business. The agreement allows for continuity of service for our North American clients associated with this transaction and enables RBS to further focus on the needs of our target customer base."

Tokyo-based Mizuho Financial Group is Japan's second-largest lender by assets.

In 2012, a clutch of investors led by the number 3 bank Sumitomo Mitsui Financial Group purchased RBS's aircraft leasing business for $7.3bn.

In 2010, Japan's largest lender, Mitsubishi UFJ Financial Group, agreed to buy RBS's £3.3bn project finance portfolio.