Nature of the asset
The Yongin-Seoul Expressway is a 22.9 km, dual two to three-lane tolled expressway consisting of six bridges, 10 tunnels and seven interchanges connecting Youngduck-ri, Yongin City to Segok-dong in Seoul. Yongin-Seoul Expressway eases traffic congestion problem in Suwon-Seoul section of the Seoul-Busan Highway, one of the most heavily travelled expressway. Construction began in October 2005 and was successfully completed on time in June 2009.
Nature of the investment
MKIF has invested in Gyungsu Highway Co., Ltd. (Gyungsu), the concessionaire of Yongin-Seoul Expressway in the form of equity and subordinated loans. MKIF currently has 35% of equity interest (KRW 57.8 billion) and 58% of the subordinated loan (KRW77.0 billion). MKIF has also committed to acquire equity interest in Gyungsu owned by the sponsors, representing 32%, by the end of the second year of operation, subject to certain conditions precedent. The MKIF’s total commitment to the project is KRW206.6 billion*.
* Includes MKIF’s commitment to acquire an additional 32% equity interest at the maximum of variable price range agreed with project sponsors.
Concession agreement
| Government authority: | Ministry of Land, Transport and Maritime Affairs |
|---|---|
| Concession term: | 30 years |
| Guarantee duration: | 10 years |
| Concession term commencement: | July 2009 |
| Minimum Guarantee*: | 70% of annual CA projected revenue |
| Revenue Cap: | 130% of annual CA projected revenue |
* Subject to actual toll revenues being no less than 50% of the revenue forecast.
Facilities
| Length: | 22.9 km |
|---|---|
| Capacity: | 4–6 lanes in both directions |
| Toll rate: | KRW 1,800—small vehicles |
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