Pakistan Housing Finance Company eyes equity investment of Rs12bn in Silkbank

Pakistan Housing Finance Company (PHFC) has expressed an interest in injecting upto Rs12 billion in Silkbank Limited with support from an investment consortium.

The bank shared the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“We would like to inform you that PHFC a subsidiary of Lake City Limited has expressed its in-principle interest in the injection of equity upto Rs12 billion into Silkbank Limited,” read the notice.

As per the notice, PHFC, which offers home loans, is leading a consortium of an investor group, “supported and backed by the well renowned and experienced management of Burj Capital, having requisite experience in setting up and successfully managing Islamic and conventional banks in Pakistan”.

The notice said that Pakistani business conglomerate Arif Habib Group is also willing to participate in the consortium as a minority stakeholder.

The Board of Directors of Silkbank has granted its “in-principle approval” for allowing PHFC to conduct the required due diligence of the bank, which is subject to the approval of the the board, shareholders, the Securities and Exchange Commission of Pakistan and the State Bank of Pakistan.

Earlier this month, the International Commercial Bank South Sudan (ICB) had also expressed its intention to invest up to 50 million euros ($54.5 million) in Silkbank.

ICB is a national South Sudanese bank, founded in June 2011 by a group of South Sudanese and international businessmen.

Last year, Park View Enclave (Private) Limited (PVEL), owned by businessman and politician Aleem Khan, withdrew its intention to acquire at least 51% shareholding and control of Silkbank Limited.