Macquarie Korea Infrastructure Fund

Gwangju Second Beltway Section 3-1


Gwangju Second Beltway Section 3-1

The main section of the second beltway of Gwangju City connecting the east and west districts.

Asset overview

Gwangju Second Beltway, Section 3-1 is a 3.5 km, dual three-lane expressway with two bridges, two tunnels and one interchange, running east to west along the southern edge of Gwangju, Korea’s fifth largest city. Construction commenced in April 2002 and was completed in November 2004. This is the second private infrastructure section of the Gwangju second beltway, and is directly linked to the Gwangju Second Beltway Section 1, which is operated by KBICL, a wholly-owned concession company.

Investment details

MKIF has invested in Kwangju Ring Road Co., Ltd. ("KRRC"), the concessionaire of Gwangju Second Beltway, Section 3-1. As of record date, MKIF is a 75.0% shareholder of KRRC, and MKIF’s total investment amount is KRW 28.9 billion (equity KRW 28.9 billion).

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Concession agreement  
Government authority Gwangju Metropolitan City
Concession term 30 years
Guarantee duration 30 years
Concession term commencement December 2004
Minimum Guarantee 90% of annual CA projected revenue
Revenue Cap 110% of annual CA projected revenue
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Length 3.5 km
Capacity Dual three-lane in both directions

Asset location