As part of efforts to streamline its operations, Nissan Motor Co. said Wednesday that it has reached an agreement to sell the leasing business of a subsidiary to a unit of the Industrial Bank of Japan.
The leasing business of Nissan Leasing Co., a wholly owned subsidiary of the nation's No. 2 automaker, will be transferred to IBJ Leasing Ltd. in February next year, Nissan officials said.
The deal will reduce Nissan's interest-bearing liabilities by 100 billion yen on a consolidated basis, Nissan officials said.
Nissan was saddled with interest-bearing liabilities of 2.5 trillion yen as of March, and the company is trying to reduce that figure by 1 trillion yen by the end of March 2001.
Under the agreement, Nissan Leasing will spin off its leasing business into a new company, and 90 percent of the new firm's equity will be sold to IBJ Leasing.