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nature of the asset
The Yongin-Seoul Expressway will be a 22.9 km, dual two – to three-lane tolled expressway consisting of 6 bridge, 10 tunnels and 6 ICs connecting Youngduck-ri, Yongin City to Maegok-dong in Seoul. It’s designs 110 km/ hour speed expressway. We anticipate that this expressway will ease traffic congestion problems in the Suwon-Yangjae section of the Seoul-Busan Highway, resulting from the development of new residential cities.
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nature of the investment
MKIF has committed to invest in Gyungsu Highway Co., Ltd., or Gyungsu, the concessionaire of Yongin-Seoul Expressway in the form of equity and subordinated loans. MKIF will make equity contributions during construction such that it will be a 35.0% shareholder to Gyungsu, and has committed to provide subordinated loan of KRW77.0 billion. The MKIF’s total commitment to the project is KRW206.6 billion. MKIF has further investment commitment to acquire an additional 32 percent equity interest at the end of the second year of operation. The total investment commitment to Gyungsu is KRW206.6 billion.
Length: 22.9 km
Capacity: 4-6 lanes in both directions
Toll rate: TBD
Government authority: Ministry of Land, Transport and Maritime Affairs
Concession term: 30 years
Guarantee duration: 10 years
Concession term commencement: Under construction. Operation commencement expected in 2009
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