Nature of the asset
The Cheonan-Nonsan Expressway is an 81.0 km, dual two-lane toll expressway between Cheonan and Nonsan, connecting the northwestern and southwestern provinces of Korea as part of the national highway system. It has two major tunnels, 44 bridges and seven interchanges. Construction commenced in December 1997 and was completed in December 2002. The Cheonan-Nonsan Expressway has been in operation since December 2002.
nature of the investment
MKIF has invested in Cheonan-Nonsan Expressway Co., Ltd. (CNEC), the concessionaire of Cheonan Nonsan Expressway, in the form of equity and subordinated loans. MKIF is a 60.0% shareholder of CNEC, and provided subordinated loans of KRW182.3 billion. MKIF’s total investment in CNEC is KRW270.0 billion.
Concession agreement
| Government authority: | Ministry of Land, Transport and Maritime Affairs |
|---|---|
| Concession term: | 30 years (23 years remaining) |
| Guarantee duration: | 20 years |
| Concession term commencement: | December 2002 |
| Minimum Guarantee*: | 82% of annual CA projected revenue |
| Revenue Cap*: | 110% of annual CA projected revenue |
* Partial revenue sharing in excess of 82% to 110% level
Facilities
| Length: | 81.0 km |
|---|---|
| Capacity: | 4 lanes in both directions |
| Toll rate: | KRW 8,300 - Small vehicles |
View location map
