The government has launched a second attempt to privatize the House Building Finance Company Limited (HBFCL), appointing a KPMG led consortium as financial adviser for the proposed transaction.
The Privatisation Commission signed a Financial Advisory Services Agreement with the consortium, which will structure the transaction, value HBFCL and help market the state owned mortgage lender to potential investors.
The consortium includes KPMG, Bridge Factor, Haidermota & Co., HRSG and Asiatic Public Relations. Under the agreement, it will conduct due diligence of HBFCL, recommend a transaction structure, carry out the company’s valuation and support investor outreach and execution of the privatization.
The latest effort follows the failure of the government’s previous attempt to sell HBFCL. Pakistan Mortgage Refinance Company Limited (PMRCL), the only prequalified bidder in the earlier process, submitted an offer below the reference price approved by the federal cabinet.
The renewed privatization effort comes as the government seeks greater private sector participation in housing finance and changes to the management and governance of state owned enterprises.
The government expects the transaction to support the development of Pakistan’s housing finance market, improve HBFCL’s operational performance and expand access to mortgage financing for low and middle income households.
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