Bank Alfalah to Raise Rs. 20 Billion in Long-Term Funding From Investors

Bank Alfalah Limited (PSX: BAFL) on Thursday announced that it has obtained in-principle approval from the State Bank of Pakistan (SBP) to raise additional Tier-II capital through the issuance of redeemable capital instruments.

According to a notification submitted to the Pakistan Stock Exchange (PSX), the bank plans to issue Term Finance Certificates (TFCs) with a total value of up to Rs. 20 billion. The instruments will be issued under Section 66 of the Companies Act, 2017, and in line with SBP’s Basel III regulatory framework.

The proposed TFCs will be offered through private placement and may subsequently be listed under applicable Debt Securities Listing Regulations.

Bank Alfalah stated that the transaction remains subject to final regulatory approval from SBP, completion of transaction documentation, and fulfilment of other regulatory requirements.

The planned issuance is aimed at strengthening the bank’s capital adequacy position and supporting future balance sheet growth in compliance with Basel III capital standards.

The bank said further disclosures will be made as the process advances.