Bank Alfalah, a leading commercial Bank, has successfully raised PKR 20 billion through the issuance of a AAA-rated Tier 2 Term Finance Certificate (TFC), marking the largest TFC issuance in Pakistan’s banking industry and the Bank’s first AAA-rated TFC. The successful issuance follows approval from the State Bank of Pakistan and received strong participation from institutional investors, reflecting the market’s confidence in Bank Alfalah’s financial strength, sound governance and long-term growth strategy.
Issued under the Basel III regulatory framework, this Tier 2 Issue is a key element of the Bank’s growth strategy and will further complement our Growth Capital allowing the Bank to continue its aggressive growth strategy particularly in SME, ESG initiatives and the Consumer segment. The landmark transaction will allow the bank to increase its core profitability and enhance long term shareholder returns.
The successful issuance builds on Bank Alfalah’s strong financial performance and disciplined balance sheet management. As of December 31, 2025, the Bank reported a profit after tax of PKR 28.34 billion, total deposits of PKR 2.49 trillion, gross advances of PKR 1.15 trillion, while maintaining a Capital Adequacy Ratio (CAR) of 15.87%, comfortably above the regulatory minimum. Serving more than 9.7 million customers through a nationwide network of 1,200 branches across over 245 cities, Bank Alfalah continues to strengthen its position as one of Pakistan’s leading financial institutions through prudent financial management, innovation and a customer-centric approach. This is further strengthened by the recent announcement of PACRA to maintain Bank Alfalah’s long term rating at AAA, and short term rating of A1+ with Stable outlook.
Commenting on the successful issuance, Aasim Wajid Jawad, Group Head Strategy, Transformation, Customer Experience and VC Investments, said, “This transaction marks a defining milestone in Bank Alfalah’s capital markets journey. Successfully completing Pakistan’s banking industry’s largest TFC issuance and our first AAA-rated TFC reflects the confidence that investors place in our financial strength, strategic direction and disciplined approach to growth. By further strengthening our capital base, we are enhancing our capacity to support customers, capture future growth opportunities and contribute meaningfully to Pakistan’s economic progress.”
Pervez Shahbaz Khan, Group Head, Global Markets & Treasury, Bank Alfalah, added, “The successful execution of this landmark transaction demonstrates the depth of investor confidence in Bank Alfalah’s credit quality and financial resilience. We are delighted by the strong institutional investor participation, which enabled us to successfully complete the largest TFC issuance undertaken by Pakistan’s banking industry.”
The successful completion of this transaction underscores Bank Alfalah’s commitment to maintaining a strong capital position in line with Basel III requirements while continuing to create long-term value for customers, investors, regulators and the communities it serves. As the Bank continues to invest in innovation, digital transformation and sustainable growth, it remains well positioned to support Pakistan’s evolving financial landscape and drive inclusive economic development.
