Lahore: Daewoo Pakistan Express Bus Service Limited has been assigned initial ratings by PACRA for its third rated, secured, privately placed, short-term Sukuk-III valued at PKR 4 billion. The company, a leading transport and logistics operator in Pakistan, has structured the Sukuk to include a Green Shoe Option of up to PKR 2 billion and secured by a ranking charge over current assets with a 25% margin.

According to The Pakistan Credit Rating Agency Limited, Daewoo Pakistan has undertaken several measures to ensure the security and seniority of Sukuk holders. These include maintaining a sufficient cushion in current assets and keeping Running Finance limits equivalent to the outstanding Sukuk amount unutilized throughout the Sukuk's tenure. A Debt Payment Account will be managed efficiently under the lien of the Investment Agent to ensure timely repayment.

Established in 1997, Daewoo Pakistan manages over 400 buses and 200 cargo trucks and has expanded into public sector mass transit projects and waste management. The company's revenue for the first half of 2026 reached approximately PKR 31,581 million, a 34.7% increase compared to the previous year. The Waste Management segment now represents 53.7% of total revenue, driven by the Suthra Punjab initiative. The company's capital structure has become more leveraged with borrowings rising to PKR 17,136 million, primarily due to financing needs for capital expenditures and working capital.

The ratings depend on Daewoo Pakistan's ability to maintain revenue growth and profitability while adhering to financial discipline and compliance with the Sukuk terms.