The London-based bank bought an additional 6.16 percent of shares and 7.10 percent of convertible bonds from International Finance Corp., the company said late last week in a statement.

The purchase almost doubled Standard Chartered’s holding in the Asian lender to 15 percent, compared with 8.56 percent it owned in December.

Standard Chartered, which has spent more than US$2.7 billion in acquisitions since 2006, is seeking purchases and investing in its units as UK peers retrench amid higher funding costs and credit-related write downs tied to the U.S. mortgage market.

It gained a license to incorporate its Vietnam unit locally last month, allowing it to open multiple branches and speed expansion in one of Asia’s fastest-growing economies.

The increased stake will allow Standard Chartered "to further strengthen its relationship with ACB, as well as benefit from the growth and development of the economy in Vietnam."

Standard Chartered, which has held a stake in ACB since 2005, said Vietnam is a "key market."

ACB, Vietnam’s fifth-largest lender, has said asset growth accelerated in the first quarter, rising 17 percent from the end of 2007 to VND100 trillion (US$6.3 billion).

The sole-listed bank on the Hanoi market nearly doubled its assets from a year ago to VND50.33 trillion ($3.1 billion).

ACB reported unaudited gross profit of VND501 billion ($31 million) in the first three months of this year, or 20 percent of its earnings forecast for the whole of 2008, it said in a statement on the bank’s website.

The lender has projected its total assets will increase 69.8 percent to VND45 trillion ($8.99 billion) and loans will grow 85 percent to VND59 trillion ($3.66 billion) this year.

This article appeared on www.thanhniennews.com

May 6, 2008