Bank Alfalah Gets Approval to Raise Rs20B Capital

Bank Alfalah Limited has obtained in-principle regulatory clearance from the State Bank of Pakistan (SBP) to raise capital of up to PKR 20 billion through the issuance of Tier-II capital instruments, as disclosed in its filing with the Pakistan Stock Exchange (PSX) on Thursday.

The proposed capital raising is structured through the issuance of redeemable capital in accordance with Section 66 of the Companies Act, 2017, and is intended to comply with the Basel III regulatory framework as prescribed by the SBP.

The bank has indicated that the funds will be mobilized through the issuance of Term Finance Certificates (TFCs), which may be offered via private placement and/or subsequently listed on the exchange, subject to compliance with the applicable Debt Securities Listing Regulations.

It was further noted that the transaction remains contingent upon obtaining final regulatory approval from the SBP, execution of requisite legal documentation, and fulfilment of all prescribed regulatory and compliance requirements.

The bank has stated that additional disclosures will be made in due course as the transaction advances through subsequent stages of approval and implementation.