The State Bank of Pakistan (SBP) has granted final approval to Bank Alfalah Limited to raise Rs20 billion through the issuance of redeemable capital instruments under Tier two capital regulations.
The bank disclosed this development in a formal notice submitted to the Pakistan Stock Exchange (PSX), confirming the approval of central bank for the planned capital-raising transaction.
The funds will be raised through Term Finance Certificates, which will be privately placed and may subsequently be listed under applicable debt securities listing regulations in Pakistan.
The issuance will fully comply with Basel III guidelines issued by the State Bank of Pakistan and Section 66 of the Companies Act, 2017, governing corporate capital instruments.
The transaction remains subject to the execution of all relevant legal documents and the fulfilment of any other applicable conditions as required by the regulatory framework.
Bank Alfalah is among the largest private banks in Pakistan, operating a network of more than 1,000 branches alongside an expanding digital banking presence across the country.
The bank is majority owned by Abu Dhabi Group, based in Abu Dhabi, and has consistently accessed debt markets to optimise its capital structure and maintain regulatory compliance.
Tier two capital functions as a supplementary buffer, enabling banks to strengthen their overall capital base, absorb potential financial losses, and support future lending and growth.
