Bank Alfalah Limited has received in-principle approval from the State Bank of Pakistan to raise up to Rs20 billion through Tier-II capital instruments, according to a disclosure filed at the Pakistan Stock Exchange on Thursday. The bank said the proposed issuance will be made through redeemable capital under Section 66 of the Companies Act, 2017 and in line with Basel III guidelines issued by the central bank. The funds will be raised through Term Finance Certificates, which may be privately placed and/or subsequently listed in accordance with the Debt Securities Listing Regulations.
The bank added that the transaction remains subject to final approval from the State Bank of Pakistan, execution of necessary documentation and fulfilment of regulatory conditions. It said further disclosures will be made as the process progresses.