Macquarie Korea Infrastructure Fund

Gwangju Second Beltway Section 1
Sorabol City Gas Co., Ltd.

Assets

Sorabol City Gas Co., Ltd.

Exclusive city gas retail distributor in two regions in Gyeongsangbuk-do, Korea

Asset overview

Established in 2000, Sorabol City Gas Co., Ltd. (“SRB”) is the exclusive city gas retail distributor in two regions in Gyeongsangbuk-do in Korea. In 2020, SRB distributed 8,100 million MJ of gas to 128,549 users across the two regions through its 495km of pipelines. At the end of 2020, SRB achieved the penetration rate of ~71% in the two regions in Gyeongsangbuk-do.


Investment details

MKIF, through Bomun Clean Energy Ltd. (“BCE”) as its investment vehicle, signed the share purchase agreement to acquire 100% of equity stake in SRB in June 2021. In July 2021, BCE acquired 100% of equity stake in SRB using the capital of KRW 76.1 billion (equity KRW 7.6 billion and shareholder loan KRW 68.5 billion) received from MKIF and KRW 98.5 billion received from external lenders. In August 2021, MKIF invested additional KRW 11.0 billion (equity KRW 1.1 billion and shareholder loan KRW 9.9 billion) in BCE, and BCE used such proceed to repay part of its external loans. Post the additional investment by MKIF, MKIF is a 100.0% shareholder of SRB through BCE, and MKIF’s total investment amount in SRB through BCE is KRW 87.1 billion (equity KRW 8.7 billion and shareholder loan KRW 78.4 billion). 

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Business overview  
Asset company Sorabol City Gas Co., Ltd.
Establishment 2000
Operation period Going-concern
Business Distribution & sale of city gas and associated products
Distribution area 2 regions in Gyeongsangbuk-do (Gyeongju-siand Yeongcheon-si)
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Facilities  
Pipeline length* Total 495km
No. of users* 128,549
Amount of gas distributed* 8,100 million MJ

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


Asset location