Nature of the asset
Construction of the 1.7 km, dual two-lane, cable-stayed Machang Bridge commenced in April 2004 and was completed in June 2008. The bridge provides a vital link across Masan Bay and is expected to alleviate severe traffic congestion in the cities of Masan and Changwon as an alternative route for travel between Korea’s two southern provinces, Jeollanam-do and Gyeongsangnam-do.
nature of the investment
MKIF has invested in MCB Co., Ltd. (MCB), the concessionaire of Machang Bridge in the form of equity and subordinated loans. MKIF currently has 100% of equity interest KRW48.3 billion and 100% of the subordinated debt (KRW51.2 billion) in MCB. MKIF’s total investment to MCB is KRW99.5 billion.
Concession agreement
| Government authority: | Gyeongsangnam Provincial Government |
|---|---|
| Concession term: | 30 years (29 years remaining) |
| Guarantee duration: | 30 years |
| Concession term commencement: | July 2008 |
| Minimum Guarantee: | 80% of annual CA projected revenue |
| Revenue Cap: | 120% of annual CA projected revenue |
Facilities
| Length: | 1.7 km |
|---|---|
| Capacity: | 4 lanes in both directions |
| Toll rate: | KRW 2,000 – small vehicles |
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