Karachi: Bank Alfalah Limited is set to list its Rated, Unsecured, Subordinated, Privately Placed Term Finance Certificates (TFCs) valued at PKR 20,000 million on the Pakistan Stock Exchange (PSX) starting September 25, 2026. The move is in accordance with the "Privately Placed Debt Securities' Listing Regulations" under Chapter 5C of the PSX Rule Book.
According to a report dated September 23, 2026, trading of these TFCs will commence from September 28, 2026, on the PSX trading platform. The National Clearing Settlement System (NCSS) will facilitate settlement on a T+1 basis. Pak Oman Investment Company Limited has been designated as the Investment Agent for this issuance.
The TFCs, which come with a tenor of up to 10 years, offer a floating coupon rate based on the 6-month KIBOR plus an additional 100 basis points. The certificates are exclusively available for Qualified Institutional Buyers (QIBs) as defined in the PSX Rule Book. Each certificate holds a face value of PKR 100,000.
According to information available from the Pakistan Stock Exchange (PSX), the TFCs are a strategic move to contribute towards Bank Alfalah's Tier 2 Capital, aligning with the State Bank of Pakistan's guidelines on Capital Adequacy Ratio (CAR) requirements. The funds will be utilized in the bank's regular business activities as permitted by its Memorandum & Articles of Association.
The issuance comes with a mechanism that includes a Call Option, allowing Bank Alfalah to redeem the TFCs partially or fully after five years from the issue date, subject to State Bank of Pakistan's approval. The TFCs have been rated AAA by The Pakistan Credit Rating Agency Limited (PACRA), reflecting the financial strength of Bank Alfalah.
The TFCs will be listed under the Privately Placed Debt Securities Listing Regulations and are expected to be classified as "Liabilities" on the bank's balance sheet. The transaction's legal counsel is Mohsin Tayebaly & Co (MTC).
Eligible investors must adhere to the "fit and proper" criteria as stipulated by the State Bank of Pakistan, particularly if their investment results in owning 5% or more of the bank's ordinary shares upon conversion of the TFCs. The transfer of these certificates will align with the Central Depositary Act, 1997, and CDC Regulations.