Bank Alfalah gets State Bank approval to raise Rs20bn through Tier 2 capital

Bank Alfalah Limited has received final approval from the State Bank of Pakistan to raise Rs20 billion through the issuance of Tier 2 capital, according to a notice submitted to the Pakistan Stock Exchange on Thursday.

The bank said the capital will be raised through redeemable capital under Section 66 of the Companies Act, 2017, and in line with Basel III guidelines issued by the State Bank of Pakistan.

The issuance will be made in the form of Term Finance Certificates for an aggregate amount of Rs 20 billion.

According to the notice, the Term Finance Certificates will be privately placed and may also be subsequently listed in accordance with the Debt Securities Listing Regulations.

Bank Alfalah said the transaction remains subject to the execution of relevant transaction documents and the fulfilment of other applicable conditions.