Less than a week after it sold its Mexican insurance arm, Ally Financial reached an agreement Tuesday to sell Ally Credit Canada, its Canadian auto finance operation, and ResMor Trust to Royal Bank of Canada.

These Toronto-based operations had $13.6 billion in assets at the end of the third quarter while Ally Credit Canada Limited, with $9.4 billion in assets, is one of the largest auto finance companies in the country. ResMor Trust, which offers deposits via independent brokers and other products, had $3.8 billion in deposits and $4.2 billion in assets at the end of the quarter.

From this transaction with RBC, Canada’s largest bank in terms of assets and market capitalization, Ally would receive $4.1 billion in proceeds and a $620 million premium to book value, which in 3Q12 was about $3.5 billion.

RBC also announced Tuesday it is set to become a provider of General Motors of Canada’s subvented business once the Ally transaction is complete. Such a move would help RBC become “a leader in auto financing in Canada,” stated a release from the lender.

This sale puts Ally closer to repaying its $17.2 billion government bailout.  

“This transaction represents another significant step toward our plans to pursue strategic alternatives for our international operations and accelerate plans to repay the remaining U.S. Treasury investment,” said Ally CEO Michael Carpenter.

Ally’s auto finance operations in Europe and Latin America remain, and the company is expected to announce plans for them in the coming weeks as it evaluates options.