Bank Alfalah completes record Rs20bn AAA-rated Tier-2 TFC issue

Bank Alfalah has completed a record Rs20 billion Tier-2 Term Finance Certificate (TFC) issuance, setting a new benchmark for Pakistan's banking industry with the country's largest banking-sector TFC offering and the lender's first instrument of its kind to secure a AAA rating.

The capital raising, carried out after receiving regulatory approval from the State Bank of Pakistan (SBP), attracted strong interest from institutional investors, according to a statement released by the bank on Thursday.

The bank said the proceeds would strengthen its capital position, support sustainable profitability and enhance long-term value for shareholders while increasing its ability to capitalise on future business opportunities.

Aasim Wajid Jawad, Group Head Strategy, Transformation, Customer Experience and VC Investments, said the transaction represented a major milestone in the bank's capital markets journey, adding that the successful offering reflected investor confidence in Bank Alfalah's financial strength, strategic direction and growth outlook.

Meanwhile, Group Head Global Markets and Treasury Pervez Shahbaz Khan said robust institutional participation demonstrated confidence in the bank's creditworthiness and financial resilience, enabling the successful execution of the industry's largest TFC issuance.

Bank Alfalah ended 2025 with a profit after tax of Rs28.34 billion, while total deposits reached Rs2.49 trillion and gross advances stood at Rs1.15 trillion. The bank reported a Capital Adequacy Ratio (CAR) of 15.87%, remaining comfortably above the minimum regulatory requirement.