The Privatisation Commission (PC) has signed a Financial Advisory Services Agreement (FASA) with a consortium led by KPMG for the privatisation of House Building Finance Company Limited (HBFCL).
The consortium includes Bridge Factor, a corporate finance advisory firm; Haidermota & Co., a law firm; HRSG, a human resources firm; and Asiatic Public Relations, a media and public relations firm. The consortium brings together expertise in financial advisory, transaction structuring and execution to support the Privatisation Commission in advancing the HBFCL privatisation process.
This will be the second attempt to privatise HBFCL, reflecting a renewed effort by the Privatisation Commission. During the previous attempt, only one bidder, Pakistan Mortgage Refinance Company Limited (PMRCL), was prequalified. However, the privatisation could not be concluded after the Privatisation Commission rejected the bid because it was below the reference price approved by the Federal Cabinet.
Under the agreement, the financial adviser will conduct comprehensive due diligence of HBFCL, advise on an optimal transaction structure, conduct a valuation and support the Privatisation Commission throughout the marketing and execution of the transaction.
The privatisation 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 expanding access to housing finance.
A stronger and more competitive HBFCL could help expand financing opportunities, particularly for low- and middle-income households, while supporting the government’s broader objective of promoting affordable housing in the country.
The Privatisation Commission will continue to work closely with the financial adviser and relevant stakeholders to ensure the transaction progresses in accordance with the approved process and established regulatory requirements.
