Daewoo Express successfully raised Rs2 billion through its first Sukuk issuance, marking a significant milestone in the company’s financing strategy. The Sukuk was structured as a Shariah-compliant instrument, aimed at supporting the company’s expansion plans and enhancing its operational capabilities.
The transaction highlights the growing use of Islamic finance instruments by corporates in Pakistan to mobilize long-term funding while adhering to Shariah principles.
Pak Oman Investment Company Limited acted as the joint lead financial arranger and advisor for the Sukuk issuance, ensuring the transaction was executed efficiently and in accordance with market best practices.
Legal counsel was provided by Mohsin Tayabally & Company, overseeing all regulatory and contractual aspects of the deal. Al Hilal Shariah Advisors served as the Shariah advisor, certifying that the Sukuk structure complied with Islamic finance principles.
The Sukuk received a rating from the Pakistan Credit Rating Agency (PACRA), which evaluated the instrument’s creditworthiness and risk profile. This rating provided investors with confidence regarding the security and reliability of the investment. The issuance attracted participation from a broad range of institutional investors, demonstrating strong market demand.
Notable participants included National Investment Trust (NIT), Alfalah Investments, NBP Funds Limited, AKD Investment Management Limited, Pak Qatar Asset Management Company Limited, and 786 Investments Limited. Their involvement underscores the growing interest in Shariah-compliant investment instruments among institutional investors in Pakistan.
The success of Daewoo Express’s first Sukuk issuance reinforces the potential of Islamic finance as a viable and effective tool for corporate financing. It also reflects the company’s commitment to diversifying funding sources, promoting financial inclusion, and leveraging innovative financial solutions to support business growth.
The proceeds from the Sukuk are expected to strengthen the company’s financial position and facilitate future expansion projects, contributing to the overall development of the transport and logistics sector in Pakistan.
