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The UDC deal follows the sale last week of ANZ's 20 per cent stake in Shanghai Rural Commercial Bank to COSCO for $1.8 billion.
The Bank says the sale of UDC Finance to HNA Group, a Chinese based conglomerate with global interests in finance, transport and tourism, was a part of an ongoing strategy of "simplifying its business and capital efficiency."
As at 30 September 2016, UDC Finance had a total revenue of $NZ120 million ($~A113 million) and $NZ2.6 billion ($~A2.4 billion) in loans.
"The sale of UDC is consistent with our strategy to simplify the bank and is a good outcome for customers and staff," says ANZ New Zealand chief David Hisco.
"HNA Group is one of the world's largest asset finance and leasing companies, and it intends to preserve UDC's operations including offering continued employment to all staff."
ANZ believes that the sale will result in a net gain of $A100 million and boost the Bank's common equity tier one capital ratio by about 10 basis points.
The sale also includes the transfer of the "Escanda" name and trademark in Australia and New Zealand.
The finalisation of the sale is subject to undisclosed conditions and regulatory approval and is not expected to be wrapped up until late this year.
ANZ shares rose by 18 cents, or 0.6 per cent, earlier in the day to $31.50 before falling slightly to $31.29 at 1.30pm AEST.
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