Banco Bilbao Vizcaya Argentaria (BBVA) SA, the second-largest bank in Spain, aims to increase its stake in China CITIC Bank Corp to 15%.

Earlier, it hold 10% equity stake in the stake in China CITIC Bank, which is the listed banking unit of the China’s largest investment conglomerate.

According to the sources, the Spanish lender expects to allocate EUR 1.1 billion to buy a 5% stake in China CITIC Bank at HK$6.45 per share.

The move is in proportion to BBVA’s strategy to merge its position as a leading foreign investor in China’s banking industry.

In a meeting, officials from China CITIC Bank and BBVA had agreed to sign an agreement to expand their cooperation. The deal was largely focused on auto financing and private banking.

Earlier in 2008, BBVA decided to raise its holding in China CITIC Bank from 4.83% to 10%. The company has also given a decision to acquire another 5% in the bank.

BBVA is expected to exercise the option next week.