Nature of the asset
The Incheon International Airport Expressway is a 40.2 km, dual three-to four-lane expressway connecting Yeongjong Island, site of the Incheon International Airport, to Korea’s capital, Seoul. The Incheon International Airport Expressway is Korea’s first operational private infrastructure asset under the PPI Act. Construction began in December 1995 and was completed in December 2000. The Incheon International Airport Expressway includes two major bridges, the 4.4km Yeongjong Grand Bridge and the 2.56 km Banghwa Grand Bridge, as well as the 630-metre Gaehwa tunnel.
nature of the investment
MKIF has invested into New Airport Hiway Co., Ltd. (NAHC), the concessionaire of Incheon International Airport Expressway, in the form of equity and subordinated loans. MKIF is a 24.1% shareholder of NAHC, and has committed to provide a subordinated loan of KRW51.7 billion. MKIF’s total investment in NAHC is KRW109.9 billion.
Concession agreement
| Government authority: | Ministry of Land, Transport and Maritime Affairs |
|---|---|
| Concession term: | 30 years (21 years remaining) |
| Guarantee duration: | 20 years |
| Concession term commencement: | December 2000 |
| Minimum Guarantee*: | 80% of annual CA projected revenue |
| Revenue Cap*: | 110% of annual CA projected revenue |
* Partial revenue sharing in excess of 80% to 110% level
Facilities
| Length: | 40.2 km |
|---|---|
| Capacity: | 6-8 lanes in both directions |
| Toll rate: | KRW 7,400 - Small vehicles |
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