Macquarie Korea Infrastructure Fund
Seoul-Chuncheon Highway is a 61.4 km, dual two to three-lane toll expressway providing a link between Seoul and Gangwon Province, known as a capital of tourism in Korea. The expressway provides an alternative link between the east part of Seoul and Chuncheon through Kyunggi province, where the regional expressways and highways experience heavy congestion, especially on weekends. Construction began in August 2004, and was successfully completed in July 2009.
MKIF has invested in Seoul-Chuncheon Highway Co., Ltd. ("SCH"), the concessionaire of Seoul-Chuncheon Highway. As of the record date, MKIF is a 17.59% shareholder of SCH, and MKIF’s total investment amount is KRW 162.4 billion (equity KRW 0.6 billion and subordinated loan KRW 161.8 billion).
|Government authority||Ministry of Land, Infrastructure and Transport|
|Concession term||30 years|
|Guarantee duration||15 years|
|Concession term commencement||July 2009|
|Minimum Guarantee||60% of annual CA projected revenue|
|Revenue Cap||140% of annual CA projected revenue|
*No revenue guarantee applies if actual revenue is below 50% of the annual concession agreement projected revenue.
|Capacity||Dual two to three-lane in both directions|