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IFC proposes $7.5m investment for 15% stake in Pakistan Mortgage Refinance

International Finance Corporation (IFC), the private investment arm of the World Bank Group, has proposed to invest up to $7.5 million for a 15 per cent stake in Pakistan Mortgage Refinance Company Ltd (PMRCL), it said in a disclosure. With the proposed investment, IFC aims to support PMRCL in meeting its minimum capital requirements and mobilising additional Tier 1 capital, the disclosure dated April 16 said. PMRCL was set up by The State Bank of Pakistan in 2015, with the objective to promote, develop and improve housing finance market, and increase accessibility and availability of affordable housing finance. Based on capital commitments, the majority 51 per cent in PMRCL is held by private sector. However, it will have both private and public-sector entities as its shareholders, the disclosure said. IFC’s investment aimed at addressing key market inefficiencies and promoting access to housing finance in Pakistan, by supporting PMRCL in refinancing housing portfolios of primary mortgage lenders at fixed rates and with longer maturities, it said. Like in other Asian nations, IFC has been increasing its exposure in Pakistan in recent months. In November last year, it proposed a loan of up to $25.6 million in Pakistan-based Zorlu Solar Pakistan Pvt Ltd. In June, IFC said it will make a cornerstone commitment of $20 million in The Abraaj Group’s $200 million Pakistan-focused fund focused on small and medium enterprises. In April last year, IFC had said that it aims to increase its program portfolio in Pakistan to over one billion dollars from $800 million previously to tap opportunities arising from increased private sector investment in the country.