Macquarie Korea Infrastructure Fund
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.
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).
|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
|Capacity||Dual two-lane in both directions|