Daewoo Pakistan Express Bus Service Limited (Daewoo Express) and a Consortium of Development Financial Institutions (DFIs), led by Saudi Pak Industrial and Agricultural Investment Co. Ltd., have signed a landmark agreement to provide a 5-year Lease Financing Facility amounting to Rs. 2,000 million, paving the way for climate-resilient and sustainable transport solutions. This Facility marks the DFIs’ first foray into Electric Vehicle (EV) financing, enabling Daewoo Express to procure a combination of EV and Euro III intercity buses from Golden Dragon, P.R. China.
The DFIs involved include Saudi Pak Industrial and Agricultural Investment Company Limited, Pak China Investment Company Limited, Pak Libya Holding Pvt Limited, and Pak Oman Investment Company Limited. JS Bank acted as the Account Bank, and Mohsin Tayebaly & Co served as the Transaction Legal Counsel.
Pakistan is among the top ten countries most affected by climate change over the past two decades. The transportation sector contributes approximately one-sixth of global emissions, underscoring the urgent need for efficient and green transportation solutions to address the country’s environmental challenges.
This partnership between Daewoo Express and the Consortium of DFIs is a significant first step for the banking sector in financing EV buses, showcasing how innovative financial structures can drive the adoption of sustainable technologies while addressing pressing environmental issues.
Speaking on the occasion, Faisal Ahmed Siddiqui, CEO of Daewoo Express, stated: “Daewoo Express is the leading transport company in Pakistan, with over 25 years of operations and a fleet of more than 1,000 buses covering various intercity and intracity routes.
Under our 5-year strategy, we aim to transform and replace a significant portion of our existing intercity fleet with climate-friendly Electric Vehicles (EVs) and Euro III buses. By embracing an environmentally friendly approach in our business operations, we are not only improving our fleet’s efficiency but also contributing to Pakistan’s long-term environmental goals, ensuring we remain at the forefront of innovation in the transport sector. We are grateful to all the DFIs with whom we have worked to bring this transaction to fruition.”
Rizwan Ahmed, General Manager and CEO of Saudi Pak Industrial and Agricultural Investment Company Ltd, shared his thoughts: “We are privileged to have played a leading role in forming Pakistan’s first-ever DFI Syndicate for a long-term lease arrangement. This transaction aligns with our mission to enable private sector participation in sustainable transport and infrastructure development. By providing long-term financing for sustainable transportation initiatives, the DFIs are paving the way for impactful green solutions that align with Pakistan’s climate goals.
Saudi Pak believes that such financing structures can be replicated across other sectors, amplifying the impact of sustainable projects and strengthening the role of DFIs in driving development.”
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