Nature of the asset
Gwangju Second Beltway, Section 3-1 is a 3.5 km, dual three-lane city expressway with two bridges, two tunnels and one interchange, running east to west along the southern edge of Gwangju, Korea’s fifth largest city. Construction commenced in April 2002 and was completed in November 2004. This is the second private infrastructure section of the Gwangju second beltway, and is directly linked to the Gwangju Second Beltway Section 1, which is operated by KBICL, a wholly-owned concession company.
nature of the investment
MKIF has invested in Kwangju Ring Road Co., Ltd. (KRRC), the concessionaire of Gwangju Second Beltway, Section 3-1 in the form of equity and senior loans. MKIF is a 75.0 % shareholder of KRRC, and provided senior loans of KRW73.3 billion. MKIF’s total investment in KRRC is KRW102.2 billion.
Concession agreement
| Government authority: | Gwangju City Governement |
|---|---|
| Concession term: | 30 years (25 years remaining) |
| Guarantee duration: | 30 years |
| Concession term commencement: | December 2004 |
| Minimum Guarantee: | 90% of annual CA projected revenue |
| Revenue Cap: | 110% of annual CA projected revenue |
Facilities
| Length: | 3.5 km |
|---|---|
| Capacity: | 6 lanes in both directions |
| Toll rate: | KRW 1,000 - Small vehicles |
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