Karachi, April 23, 2026: Bank Alfalah Limited has received in-principle approval from the State Bank of Pakistan (SBP) to raise Tier 2 capital through redeemable capital instruments, according to a disclosure submitted to the Pakistan Stock Exchange (PSX).
The bank said the proposed issuance will be made in the form of Term Finance Certificates (TFCs), which may be privately placed and/or subsequently listed in accordance with the applicable debt securities regulations.
The aggregate amount of the proposed Tier 2 capital issuance can reach up to Rs20 billion, subject to the completion of the required regulatory and transaction-related formalities.
According to the disclosure, the proposed capital raising is being undertaken under Section 66 of the Companies Act, 2017, while the issuance will also comply with the relevant Basel III guidelines issued by the SBP.
The in-principle approval marks an important step for Bank Alfalah as it seeks to strengthen its regulatory capital base. Tier 2 capital is generally used by banks to enhance their capital adequacy and provide an additional buffer against financial risks.
However, the bank clarified that the transaction remains subject to final approval from the State Bank of Pakistan, along with the execution of relevant transaction documents and fulfillment of other applicable conditions.
Bank Alfalah said it will make further disclosures as the transaction progresses.
The announcement was made through a letter dated April 23, 2026, addressed to the General Manager of the Pakistan Stock Exchange. The disclosure was issued in accordance with the Securities Act, 2015 and the PSX Rule Book.
