Bank Alfalah 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.
Landmark AAA-Rated Tier 2 TFC Strengthens Capital Base
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 its growth capital, allowing Bank Alfalah to continue its aggressive expansion, particularly in the SME, ESG initiatives and consumer banking segments.
The landmark transaction will also enable the Bank to increase its core profitability and enhance long-term shareholder returns.
Strong Financial Performance Supports Investor Confidence
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 and 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 more than 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.
The Bank’s financial strength is further reinforced by PACRA’s decision to maintain its long-term rating at AAA and short-term rating at A1+ with a Stable outlook.
Bank Alfalah Highlights Strategic Milestone
Commenting on the successful issuance, Aasim Wajid Jawad, Group Head Strategy, Transformation, Customer Experience and VC Investments, said the transaction represents a defining milestone in Bank Alfalah’s capital markets journey.
He noted that successfully completing Pakistan’s banking industry’s largest TFC issuance and the Bank’s first AAA-rated TFC reflects investors’ confidence in its financial strength, strategic direction and disciplined growth strategy.
He added that the strengthened capital base will enhance the Bank’s ability to support customers, capture future growth opportunities and contribute to Pakistan’s economic progress.
Strong Institutional Participation Marks Successful Transaction
Pervez Shahbaz Khan, Group Head, Global Markets & Treasury, Bank Alfalah, said the successful execution of the landmark transaction demonstrates the depth of investor confidence in the Bank’s credit quality and financial resilience.
He added that strong participation from institutional investors enabled Bank Alfalah to successfully complete the largest TFC issuance ever undertaken by Pakistan’s banking industry.