Bank Alfalah Limited (PSX: BAFL) has announced that it has received in-principle approval from the State Bank of Pakistan (SBP) to raise additional funds aimed at strengthening its capital position.

In a notice submitted to the Pakistan Stock Exchange (PSX), the bank said it plans to issue redeemable capital in the form of Term Finance Certificates (TFCs) with a total size of up to Rs20 billion.

The proposed fundraising will be carried out through private placement and may later be listed in accordance with applicable debt securities regulations. The issuance is designed to enhance the bank’s regulatory capital under Basel III requirements and support future business expansion.

Bank Alfalah clarified that the transaction is subject to final approval from SBP, completion of legal documentation, and fulfilment of all regulatory conditions.

The bank added that further disclosures will be made as the process moves forward.