Karachi: Bank Alfalah has raised PKR 20 billion through a AAA-rated Tier 2 Term Finance Certificate (TFC), marking the largest such issuance in Pakistan’s banking industry and the bank’s first AAA-rated TFC, according to an official announcement.
The issuance, approved by the State Bank of Pakistan (SBP), received strong participation from institutional investors and is expected to strengthen Bank Alfalah’s capital position under the Basel III regulatory framework. The additional capital will support the bank’s expansion plans, including growth in SME financing, consumer banking, and ESG-related initiatives.
The Bank Alfalah PKR 20 billion TFC issuance represents a significant development for Pakistan’s banking sector as financial institutions continue to strengthen their capital buffers and support long-term business growth.
The Tier 2 capital raised through the certificate will complement the bank’s existing growth capital and enhance its capacity to expand lending operations while maintaining regulatory requirements.
Bank Alfalah Reports Strong Financial Position
The latest capital raise comes as Bank Alfalah continues to report steady financial performance and balance sheet growth.
According to the bank, it recorded a profit after tax of PKR 28.34 billion for the year ended December 31, 2025. During the same period, the bank reported:
- Total deposits: PKR 2.49 trillion
- Gross advances: PKR 1.15 trillion
- Capital Adequacy Ratio (CAR): 15.87%
The bank said its capital adequacy ratio remained above the regulatory minimum, reflecting its financial stability and ability to support future expansion.
Bank Alfalah currently serves more than 9.7 million customers through a nationwide network of 1,200 branches across over 245 cities.
Investors Show Confidence in Bank’s Financial Strength
The successful completion of the TFC issuance reflects strong institutional investor participation and confidence in the bank’s financial position, according to Bank Alfalah officials.
Aasim Wajid Jawad, Group Head Strategy, Transformation, Customer Experience and VC Investments at Bank Alfalah, said the transaction marked an important milestone in the bank’s capital markets journey.
He said the issuance would strengthen the bank’s ability to support customers, pursue future growth opportunities, and contribute to economic activity.
Pervez Shahbaz Khan, Group Head Global Markets & Treasury at Bank Alfalah, said the strong response from investors demonstrated confidence in the bank’s credit quality and financial resilience.
Bank Alfalah Maintains Strong Credit Ratings
The bank’s financial profile was further supported by PACRA’s recent decision to maintain Bank Alfalah’s long-term rating at AAA and short-term rating at A1+ with a Stable outlook.
The ratings reflect the institution’s financial position, risk management practices, and continued performance in Pakistan’s competitive banking sector.
The latest TFC issuance adds to Bank Alfalah’s efforts to strengthen its capital base and expand its role in Pakistan’s financial services industry.
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