Macquarie Korea Infrastructure Fund

Gwangju Second Beltway Section 1
Haeyang Energy Co., Ltd.

Assets

Haeyang Energy Co., Ltd.

Exclusive city gas retail distributor in Gwangju City and eight other regions in Jeollanam-do, Korea

Asset overview

Established in 1983, Haeyang Energy Co., Ltd. (“HY”) is the exclusive city gas retail distributor in Gwangju City and eight other regions in Jeollanam-do, Korea. In 2020, HY distributed 33,398 million MJ of gas to 738,593 users across the nine regions through its 2,383km of pipelines. At the end of 2020, HY achieved the penetration rate of ~100% in Gwangju City and ~33% in the eight regions in Jeollanam-do.


Investment details

MKIF, through Youngsan Clean Energy Ltd. (“YCE”) as its investment vehicle, signed the share purchase agreement to acquire 100% of equity stake in HY in June 2021. In July 2021, YCE acquired 100% of equity stake in HY using the capital of KRW 282.7 billion (equity KRW 28.3 billion and shareholder loan KRW 254.4 billion) received from MKIF and KRW 364.2 billion received from external lenders. In August 2021, MKIF invested additional KRW 39.8 billion (equity KRW 4.0 billion and shareholder loan KRW 35.8 billion) in YCE, and YCE used such proceed to repay part of its external loans. Post the additional investment by MKIF, MKIF is a 100.0% shareholder of HY through YCE, and MKIF’s total investment amount in HY through YCE is KRW 322.5 billion (equity KRW 32.3 billion and shareholder loan KRW 290.2 billion). 

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Business overview  
Asset company Haeyang Energy Co., Ltd.
Establishment 1982
Operation period Going-concern
Business Distribution & sale of city gas and associated products
Distribution area Gwangju City and 8 other regions in Jeollanam-do (Naju-si, Hwasun-gun, Jangseong-gun, Damyang-gun, Yeonggwang-gun, Haenam-gun, Hampyeong-gun and Jangheung-gun)
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Facilities  
Pipeline length* Total 2,383km
No. of users* 738,593
Amount of gas distributed* 33,398 million MJ

*Pipeline length as at the end of 2020, and no. of users and amount of gas distributed in 2020.


Asset location