On April 23, 2026, Bank Alfalah Limited announced a significant financial development. The bank officially received in-principle approval from the State Bank of Pakistan (SBP). This regulatory green light allows the institution to issue Tier 2 capital.
Bank Alfalah will generate this Tier 2 capital through redeemable capital. Consequently, the transaction falls under Section 66 of the Companies Act, 2017. The move also complies directly with the Basel III guidelines issued by the SBP.
To execute this, the bank will issue the capital entirely in the form of Term Finance Certificates.
The financial institution plans to privately place these certificates. Afterward, the bank may subsequently list them on the market. Any future listing will strictly follow the Debt Securities Listing Regulations. Through this financial issuance, Bank Alfalah targets an aggregate amount of up to PKR 20,000,000,000 (PKR 20 Billion).
Despite the initial approval, the transaction remains incomplete. Bank Alfalah still requires final, definitive approval from the SBP. Furthermore, the bank must execute all relevant transaction documents. It must also fulfill several other applicable conditions before closing the deal. Moving forward, the bank will release further disclosures as the matter progresses.
