HSBC to up stake in Vietnam's Techcombank to 20 percent

HONG KONG (Reuters) - HSBC HSBC.L said on Thursday it will raise its stake in Vietnam bank Techcombank to 20 percent from 14.4 percent in a deal worth roughly $77.1 million.

By raising its stake, HSBC will become the first foreign bank in Vietnam to hold a 20 per cent interest in a domestic bank, the company said. Techcombank is officially known as Vietnam Technological and Commercial Joint Stock Bank.

As part of the deal, Hanoi-based Techcombank will issue new shares, priced at VND 60,891.52 per share. The transaction is expected to be completed by September 5.

(Reporting by Michael Flaherty, Editing by Keiron Henderson)