Islamabad: Bank Alfalah has successfully raised PKR 20 billion through the issuance of a AAA-rated Tier 2 Term Finance Certificate (TFC), marking the largest such issuance in Pakistan's banking industry. The successful issuance, approved by the State Bank of Pakistan, witnessed strong participation from institutional investors, indicating the market's confidence in the bank's financial robustness and strategic vision.

According to Bank Alfalah, the TFC was issued under the Basel III regulatory framework and is a critical component of the bank’s growth strategy, especially in the SME, ESG initiatives, and consumer segments. The transaction is expected to enhance Bank Alfalah’s core profitability and increase long-term shareholder returns.

The issuance follows Bank Alfalah's positive financial performance, with a reported profit after tax of PKR 28.34 billion as of December 31, 2025, and a Capital Adequacy Ratio of 15.87%. With over 9.7 million customers and a network of 1,200 branches across more than 245 cities, Bank Alfalah is strengthening its position as a leading financial institution in Pakistan. Additionally, PACRA has maintained the bank's long-term rating at AAA and short-term rating at A1+ with a stable outlook.

Aasim Wajid Jawad, Group Head of Strategy, Transformation, Customer Experience, and VC Investments, emphasized the significance of this issuance as a milestone in the bank’s capital markets journey, reflecting investor confidence in Bank Alfalah's strategic direction. Pervez Shahbaz Khan, Group Head of Global Markets & Treasury, highlighted the strong institutional investor participation as a demonstration of confidence in the bank's credit quality.

The transaction is a testament to Bank Alfalah's commitment to maintaining a robust capital position while driving inclusive economic development and innovation in Pakistan's evolving financial landscape.