The Privatization Commission has signed a Financial Advisory Services Agreement with a consortium led by KPMG for the proposed sale of the House Building Finance Company Limited (HBFCL).
The consortium, which includes Corporate Finance Advisory firm Bridge Factor, legal firm Haidermota & Co., human resources firm HRSG, and media PR firm Asiatic Public Relations, brings together established expertise in financial advisory, transaction structuring and execution to support the Privatization Commission in taking the HBFCL sale process forward.
This marks the second attempt to privatize HBFCL, reflecting a renewed effort by the Privatization Commission. In the previous attempt, only a single bidder i.e. Pakistan Mortgage Refinance Company Limited (PMRCL), was pre-qualified. However, the privatization could not be successfully concluded as the bid submitted was rejected by the Privatization Commission for being lower than the reference price approved by the federal cabinet.
Under the agreement, the financial adviser will undertake comprehensive due diligence of HBFCL, advise on an optimal transaction structure, conduct valuation, and support the Privatization Commission throughout the marketing and execution of the transaction.
The privatization of HBFCL is expected to contribute to the development of Pakistan’s housing finance sector by leveraging private-sector expertise, improving governance and operational efficiency, and facilitating greater access to housing finance. A stronger and more competitive HBFCL can help expand financing opportunities, particularly for low- and middle-income households, and support the government’s broader objective of promoting affordable housing in the country.
The Privatization Commission will continue to work closely with the financial adviser and relevant stakeholders to ensure that the transaction progresses in accordance with the approved process and established regulatory requirements.