Nature of the asset
Seosuwon-Osan-Pyungtaek Expressway is a 38.5km, dual four-to six-lane tolled expressway servicing local and long-distance traffic in Kyunggi province, immediately south of Seoul. Construction began in June 2005 and completed in October 2009.
Nature of the investment
MKIF had committed to provide a subordinated loan of KRW 80 billion to Kyunggi Highway Co., Ltd.(KHC), the project concession company of Seosuwon-Osan-Oyungtaek Expressway, which represents 64% of KHC's total subordinated loan facility. In July 2009, MKIF had entered into an agreement with a Korea financial institution to divest its entire subordinated loan investment in KHC as part of its on-going capital management plan. The Transaction is expected to financially close in December 2009.
Concession agreement
| Government authority: | Ministry of Land, Transport and Maritime Affairs |
|---|---|
| Concession term: | 30 years |
| Guarantee duration: | 15 years |
| Concession term commencement: | October 2009 |
| Minimum Guarantee*: | 80%, 70%, 60% of annual CA projected revenue |
| Revenue Cap*: | 110%, 120%, 130% of annual CA projected revenue |
* Change over a five-year period
Facilities
| Length: | 38.5 km |
|---|---|
| Capacity: | 2-3 lanes in both directions |
| Toll rate: | KRW 2,700 - small vehicles |
View location map
