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You are here:   Macquarie Korea Infrastructure Fund (MKIF) > MKIF's assets > Seoul Subway Line 9, Section 1
nature of the asset

Seoul Subway Line 9, Section 1 is a 25.5 km subway line with 25 stations (including 6 transfer stations) running between Kimpo Airport in western Seoul and Gangnam Station in the business district of southern Seoul. The line connects six major districts in Seoul, including Kimpo, Yoido and Gangnam. Construction of the subway line is scheduled to begin in 2006 and the line is expected to begin operations in 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 an asset class other than toll roads, bridges or tunnels.
nature of the investment
MKIF has committed to invest in Seoul Metro Line 9 Co., Ltd. (SM9), the concessionaire of Seoul Subway Line 9, Section 1, in the form of equity and subordinated loans. MKIF will make equity contributions during construction such that it will be a 24.5% shareholder to SM9, and committed to provide subordinated loan of KRW33.5 billion. The MKIF’s total commitment to SM9 is KRW74.4 billion.
facilities
Length: 25.5 km
Capacity: 2 rails in both directions
Toll rate: TBD
concession agreement
Government authority: Seoul Metropolitan Government
Concession term: 30 years
Guarantee duration: 15 years
Concession term commencement: Under construction. Commencement ecpected in 2009
Minimum Guarantee*: 90%, 80%, 70% of annual CA projected revenue
Revenue Cap*: 110%, 120%, 130% of annual CA projected revenue
* Change over a five-year period

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