Lahore: Daewoo Pakistan Express Bus Service Limited (DPEBSL) is set to issue a third rated, secured, privately placed short-term Sukuk worth PKR 4 billion, marking a strategic financial initiative. The instrument, secured by a ranking charge over the company's current assets, including receivables with a 25% margin, is aimed at supporting the company's working capital needs. Additionally, the company has committed to maintaining unutilized Running Finance limits equivalent to the outstanding Sukuk amount to bolster the seniority position of Sukuk holders.

According to The Pakistan Credit Rating Agency Limited, DPEBSL's expansion into regulated public sector mass transit projects and the recent launch of the Daewoo Waste Management Division have significantly contributed to its revenue growth. The company, established in 1997, now manages over 400 buses, 200 cargo trucks, and more than 200 delivery centers, capturing approximately 70% market share in its sector. The revenue for CY25 increased to approximately PKR 46,880 million, driven by a 47% growth in the waste management segment and steady growth in its core transport operations. The company's financial stability is underscored by stable ownership, professional management, and robust internal controls.

The company's leveraged capital structure, which saw an increase in total borrowings to approximately PKR 16,953 million in 3MCY26, is primarily attributed to long-term CAPEX financing and short-term working capital requirements. The ratings remain contingent on DPEBSL's ability to sustain revenue growth while maintaining profitability and adhering to financial discipline and compliance with the terms of the Sukuk.