KPMG-led consortium appointed financial adviser for HBFCL privatisation

The Privatisation Commission has signed a Financial Advisory Services Agreement (FASA) with a KPMG-led consortium to advise on the privatisation of House Building Finance Company Limited (HBFCL), marking the government’s second attempt to sell the housing finance company, the Privatisation Commission spokesperson said in a press release on Sunday.

The consortium comprises KPMG, Bridge Factor, Haidermota & Co., HRSG and Asiatic Public Relations. It will provide financial, legal, human resources and public relations expertise to support the Privatisation Commission in taking the transaction forward.

Under the agreement, the consortium will conduct comprehensive due diligence of HBFCL, advise on the optimal transaction structure, carry out valuation and assist the Privatisation Commission throughout the marketing and execution of the privatisation process.

The latest move comes after the government’s previous attempt to privatise HBFCL failed. Pakistan Mortgage Refinance Company Limited (PMRCL) was the only bidder to qualify in that process, but its bid was rejected by the Privatisation Commission for being below the reference price approved by the federal cabinet.

The commission said the renewed privatisation effort was aimed at leveraging private-sector expertise to improve HBFCL’s governance and operational efficiency while expanding access to housing finance.

It said a stronger and more competitive HBFCL could help increase financing opportunities, particularly for low- and middle-income households, and support the government’s broader objective of promoting affordable housing.

The Privatisation Commission said it would work closely with the financial adviser and other stakeholders to ensure the transaction proceeds in line with the approved process and regulatory requirements.