karachi: Bank Alfalah Limited has announced that it has received the final nod from the State Bank of Pakistan (SBP) to proceed with the issuance of Tier 2 capital, marking a significant financial maneuver for the bank. The approval, dated June 18, 2026, enables the bank to issue redeemable capital under the guidelines of Section 66 of the Companies Act, 2017, along with the Basel III framework as mandated by the SBP.

The issuance will take the form of Term Finance Certificates, intended to be privately placed and potentially listed subsequently, in line with the Debt Securities Listing Regulations. The total aggregate amount for this issuance is a substantial PKR 20.00 billion, reflecting the bank's strategic move to bolster its capital structure.

According to information available from the Pakistan Stock Exchange (PSX), this development is contingent upon the execution of the relevant transaction documents and the fulfillment of other applicable conditions. The transaction, once completed, is expected to enhance Bank Alfalah's capital adequacy and contribute positively to its financial standing in the designated market category.

The bank's latest move follows its prior communication dated April 23, 2026, indicating its intent to strengthen its capital base through this issuance, aligning with both regulatory requirements and its long-term strategic objectives.