BBVA said in a posting to Spain's stock market regulator CNMV that it had an option to raise its stake in CITIC to 9.9 percent. It paid 501 million euros for 5 percent of CITIC and 488 million for the stake in its international arm.

It was the biggest investment by a Spanish company in China, said BBVA, which already has a strong presence in Latin America and earlier this year bought two Texas-based lenders for $2.64 billion.

CITIC, China's number seven lender, will give BBVA access to China's retail and corporate banking markets.

BBVA had faced competition for the CITIC stake from Japan's Mizuho Financial Group Inc , France's BNP Paribas and China's largest life underwriter, China Life Insurance , a source familiar with the situation had said earlier in November.

BBVA said it would give a presentation about the deal at 11 a.m. Spanish time (1000 GMT).

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