Nature of the asset

Gwangju Second Beltway, Section 1 is a 5.6 km, dual three-lane expressway consisting of four tunnels, ten bridges and two interchanges, running from the Gwangju Dooam Interchange to the Sotae Interchange outside the city of Gwangju with tolling at two separate locations. In response to the expansion and development of industrial areas around Gwangju, construction of the Gwangju Second Beltway commenced in 1997 to ease traffic congestion on the Gwangju First Beltway and to provide better links to the surrounding cities. Construction of Gwangju Second Beltway Section 1 began in June 1997 and was completed in December 2000.

Nature of the investment

MKIF has invested in Kwangju Beltway Investment Co., Ltd. (KBICL), the concessionaire of Gwangju Second Beltway, Section 1, in the form of equity, senior loans, subordinated loans and a working capital facility. MKIF is a 100.0% shareholder of KBICL, and has committed to provide senior loans of KRW142.0 billion, subordinated loans of KRW32.0 billion, and a working capital facility of KRW3.26 billion. MKIF's total investment in KBICL is KRW190.3 billion.

Concession agreement

Concession agreement
Government authority: Gwangju Metropolitan City
Concession term: 28 years
Guarantee duration: 28 years
Concession term commencement: January 2001
Minimum Guarantee: 85% of annual CA projected revenue
Revenue Cap: 115% of annual CA projected revenue

Facilities

Facilities
Length: 5.6 km
Capacity: Dual three-lane in both directions
Toll rate: KRW 1,200 - small vehicles

MKIF - Macquarie Korea Infrastructure Fund issued this content on 2016-01-03 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-06 06:44:08 UTC

Original Document: http://www.macquarie.com/mgl/mkif/en/mkif-assets/gwangju-2nd-beltway-section-1