Bank Alfalah raises record PKR 20B in Pakistan's largest bank TFC

What's the deal? Bank AlfalahDealroom has a profile for this one. Try Dealroom → has raised PKR 20 billion (about $72 million) through a AAA-rated Tier 2 Term Finance Certificate (TFC), the largest such issuance in Pakistan's banking industry and the bank's first AAA-rated TFC. The post-IPO debt round drew participation from institutional investors following approval from the State Bank of PakistanDealroom has a profile for this one. Try Dealroom →.

What's the endgame? Issued under the Basel III framework, the certificate strengthens the bank's capital base to fund an aggressive growth strategy across SME lending, ESG initiatives, and the consumer segment. The bank says the transaction will lift core profitability and long-term shareholder returns.

By the numbers: As of December 31, 2025, Bank Alfalah reported profit after tax of PKR 28.34 billion, total deposits of PKR 2.49 trillion, and gross advances of PKR 1.15 trillion. Its Capital Adequacy Ratio stood at 15.87%, above the regulatory minimum.

Why now? The issuance follows PACRA's decision to maintain Bank Alfalah's long-term rating at AAA and short-term rating at A1+ with a stable outlook. The lender serves more than 9.7 million customers through 1,200 branches across over 245 cities.

What they're saying: "This transaction marks a defining milestone in Bank Alfalah's capital markets journey," said Aasim Wajid Jawad, group head of strategy, transformation, customer experience, and VC investments. Pervez Shahbaz Khan, group head of global markets and treasury, added the deal "demonstrates the depth of investor confidence in Bank Alfalah's credit quality and financial resilience."

The signal: A record AAA-rated Tier 2 issuance signals deepening institutional appetite for Pakistani bank debt and gives Bank Alfalah room to expand lending while staying within Basel III capital rules.

Read more: ProPakistani

Image credit: bank alfalah