Bank Alfalah Limited has received final approval from the State Bank of Pakistan (SBP) to raise Rs. 20 billion in Tier-2 capital through the issuance of redeemable capital instruments.

According to a notice filed with the Pakistan Stock Exchange, the bank will raise the funds through privately placed Term Finance Certificates (TFCs), with the possibility of listing them later in line with debt securities regulations.

The issuance will be carried out under Basel III capital requirements issued by the SBP and in accordance with Section 66 of the Companies Act, 2017. The transaction remains subject to the execution of final documentation and completion of regulatory conditions.

Tier 2 capital acts as a supplementary buffer for banks, strengthening their capital base, improving loss-absorbing capacity, and supporting future lending growth.

Bank Alfalah, one of Pakistan’s largest private lenders, operates a network of over 1,000 branches nationwide. Majority-owned by the Abu Dhabi Group, the bank has frequently accessed debt markets to maintain regulatory capital adequacy and support its expanding operations under increasingly strict Basel III requirements.