KARACHI: The Pakistan stock exchange on Thursday formally listed its first Medium Term Finance Certificates (MTFCs) worth Rs11 billion, issued by Bank Alfalah — a subsidiary of the Emirati Abu Dhabi Group.
A Term Finance Certificate is a corporate debt instrument issued by companies in Pakistan to generate short and medium-term funds. The amount raised through the instrument will be primarily utilized to invest in government issued securities, including treasury bills, Pakistan Investment Bonds and Ijarah Sukuk.
“We have taken the first step for the growth of Pakistan’s capital market,” Atif Bajwa, the president and CEO of Bank Alfalah, said at a gong ceremony held to mark the listing. “The instrument has received overwhelming response from investors and it was oversubscribed from its value of Rs11 billion.”
Alfalah Bank is majority owned and operated by the Abu Dhabi Group which has 49.03% ownership. The International Finance Corporation (IFC), an investment arm of the World Bank, partnered with the Bank in 2014 and holds a 14.74% stake in the bank.

The bank has a total approved issue size of up to Rs50 billion which would be floated in multiple tranches over a period of five years. Out of a tranche A issue of Rs 11 billion, TFCs of Rs 9 billion have already been subscribed by Pre- (Initial Public Offering) IPO investors.
The Bank’s CEO said the economy was reviving, particularly the construction and housing sectors, as was evident from expansion in the allied sectors of cement and steel.
“These sectors will see further growth in the future but it needs long-term and sustainable funding which is being raised through debt instruments like the Medium-Term Note Program,” Bajwa added.
Speakers at the ceremony said the recent growth of Pakistan’s stock market had made it an attractive avenue for investment, with higher returns compared to regional peers.
In recent months, Pakistan’s stock market has emerged as one of the best performing markets in the Asian region despite the coronavirus pandemic.