Bank Alfalah raises PKR 20 billion in Pakistan's largest bank TFC issuance

Bank Alfalah has raised PKR 20 billion through a AAA-rated Tier 2 Term Finance Certificate (TFC), completing what it said is the largest TFC issuance by a Pakistani bank and the lender's first AAA-rated debt issue.

The issuance, approved by the State Bank of Pakistan, attracted strong demand from institutional investors, reflecting confidence in the bank's financial position, governance standards and long-term growth strategy.

Issued under the Basel III regulatory framework, the Tier 2 instrument will strengthen Bank Alfalah's capital base and support expansion in small and medium-sized enterprises (SMEs), consumer banking and environmental, social and governance (ESG) initiatives.

The bank said the additional capital would support future lending, improve long-term profitability and enhance shareholder returns.

Bank Alfalah reported a profit after tax of PKR 28.34 billion for the year ended Dec. 31, 2025. It had total deposits of PKR 2.49 trillion and gross advances of PKR 1.15 trillion, while maintaining a capital adequacy ratio of 15.87%, above the regulatory minimum.

The bank serves more than 9.7 million customers through a network of more than 1,200 branches in over 245 cities across Pakistan. It also said PACRA reaffirmed its long-term credit rating at AAA and its short-term rating at A1+ with a stable outlook.

"This transaction marks a defining milestone in Bank Alfalah's capital markets journey," said Aasim Wajid Jawad, the bank's group head of strategy, transformation, customer experience and VC investments. "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 of global markets and treasury, said strong institutional participation highlighted investor confidence in the bank's credit quality and financial resilience.

The transaction strengthens Bank Alfalah's regulatory capital under Basel III as the lender continues investing in digital transformation and sustainable growth.