Daewoo Express raises Rs4bn in third Sukuk

Daewoo Pakistan Express Bus Services Limited, one of the country’s leading inter-city transport service providers, has successfully raised Rs4 billion through the issuance of its third short-term Sukuk, with the Shariah-compliant offering drawing subscriptions worth 2.24 times the amount on offer.

“We are proud to announce Pak Oman’s continued role in supporting Daewoo Pakistan Express Bus Services Limited with the successful issuance of its PKR 4 billion Short-Term Sukuk – Issue 3,” said Pak Oman Investment Company Ltd in a post on a social media platform on Thursday.

Pak Oman Investment Company Limited, acting as mandated joint lead financial advisor, arranger and investment agent, said that the issue was oversubscribed 2.24x, “reflecting strong investor confidence in Daewoo and Pakistan’s capital markets”.

“We are committed to enabling Shariah-compliant solutions that advance clean, sustainable, and efficient transportation in Pakistan,” it added.

Daewoo Pakistan Express Bus Service Limited had earlier issued two short-term Sukuk instruments. The first raised Rs2 billion in December 2025, and the second raised Rs4 billion in March 2026.

The company, established in 1997, is a leading intercity transport and logistics operator in Pakistan, managing over 400 buses, 200 cargo trucks, and 200+ delivery centres.

It has expanded into regulated public sector mass transit projects, including Lahore Feeder, Multan Metro, Orange Line Lahore, BRT Peshawar, and BRT Karachi.

What’s a Sukuk?

A Sukuk is basically the Islamic version of a government bond.

Normally, when governments need money, they borrow it by selling bonds. Investors lend the government cash and earn interest in return.

But under Islamic finance, charging or paying interest isn’t allowed. So instead, Sukuk are structured around real assets that generate income, such as rent, allowing investors to earn Shariah-compliant returns.