Nature of the asset
Seoul Subway Line 9, Section 1 is a 25.5 km subway line running east west along the southside of the Han River, stopping at 25 stations including six transfer stations. The line connects six major districts in Seoul, including Kimpo, Yeouido and Gangnam. Construction of the subway line commenced in June 2006 and was completed in July 2009. This is the first private investment infrastructure asset in the Seoul subway network. Seoul Subway Line 9, Section 1 also represents the first investment in a concession company covering a subway asset class.
Nature of the investment
MKIF has invested in Seoul Metro Line 9 Co., Ltd. (Metro9), the concessionaire of Seoul Subway Line 9, Section 1, in the form of equity and subordinated loans. MKIF currently has 24.5% of equity interest (KRW 40.9 billion) and 50.1% of the subordinated loan (KRW33.5 billion). MKIF’s total investment in Metro9 is KRW74.4 billion.
| Government authority: | Seoul Metropolitan Government |
|---|---|
| Concession term: | 30 years |
| Guarantee duration: | 15 years |
| Concession term commencement: | July 2009 |
| Minimum guarantee*: | 90%, 80%, 70% of annual CA projected revenue with 50% threshold |
| Revenue cap: | 110%, 120%, 130% of annual CA projected revenue |
* Change over a five-year period
Facilities
| Length: | 25.5 km |
|---|---|
| Capacity: | Dual rails in both directions |
| Toll rate: | KRW 900 (Basic fare applied for the public transportation card users) |
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