Macquarie Korea Infrastructure Fund

Machang Bridge


Machang Bridge

A grand bay bridge directly connecting the cities of Masan and Changwon.

Asset overview

Construction of the 1.7 km, dual two-lane, cable-stayed Machang Bridge commenced in April 2004 and completed in 2008. The bridge provides a vital link across Masan Bay and alleviates severe traffic congestion in the cities of Masan and Changwon as an alternative route between Korea’s two southern provinces, Jeollanam-do and Gyeongsangnam-do.

Investment details

MKIF has invested in MCB Co., Ltd. (“MCB”), the concessionaire of Machang Bridge. As of the record date, MKIF is a 70.0% shareholder of MCB, and MKIF’s total investment amount is KRW 112.8 billion (equity KRW 33.8 billion and subordinated loan KRW 79.0 billion).

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Concession agreement  
Government authority Gyeongsang Namdo Government
Concession term 30 years
Guarantee duration 30 years
Concession term commencement July 2008
Minimum Guarantee 75.78% of annual CA projected revenue
Revenue Cap 100% of annual CA projected revenue

*50:50 revenue sharing with the relevant authority in excess of expected revenue at 100% level

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Length 1.7 km
Capacity Dual two-lane in both directions

Asset location