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MKIFThe leading infrastructure fund in Korea

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MKIF» MKIF assets» Cheonan-Nonsan Expressway

MKIF assets

Cheonan-Nonsan Expressway

One of Korea’s largest operating tolled highway projects

Nature of the asset
Nature of the investment

Nature of the asset

The Cheonan-Nonsan Expressway is an 81.0 km, dual two-lane toll expressway between Cheonan and Nonsan, connecting the northwestern and southwestern provinces of Korea as part of the national highway system. It has two major tunnels, 44 bridges and seven interchanges. Construction of Cheonan-Nonsan Expressway began in December 1997 and was completed and tolling operation commenced in December 2002.

MKIF has invested in Cheonan-Nonsan Expressway Co., Ltd. (CNEC), the concessionaire of Cheonan Nonsan Expressway, in the form of equity and subordinated loans. MKIF is a 60.0% shareholder of CNEC, and provided subordinated loans of KRW182.3 billion. MKIF’s total investment in CNEC is KRW270.0 billion.

Concession agreement

Concession agreement
Government authority:	Ministry of Land, Transport and Maritime Affairs
Concession term:	30 years
Guarantee duration:	20 years
Concession term commencement:	December 2002
Minimum Guarantee*:	82% of annual CA projected revenue
Revenue Cap*:	110% of annual CA projected revenue

* Partial revenue sharing in excess of 82% to 110% level

Facilities

Facilities
Length:	81.0 km
Capacity:	Dual two-lane in both directions
Toll rate:	KRW 8,700 – Small vehicles

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Macquarie only carries on banking activities in those countries it is authorised to do so. Macquarie Bank Limited (MBL) is authorised by the Australian Prudential Regulation Authority (APRA) in Australia to carry out banking business in Australia. Each of MBL, acting through its London branch, and Macquarie Bank International Limited, is authorised and regulated by the UK Financial Services Authority to carry on banking business in the United Kingdom. MBL, acting through its Seoul Branch, is authorised and regulated by the Financial Services Commission in Korea to carry out banking business in Korea. MBL, acting through its Singapore Branch, is authorised and regulated by the Monetary Authority of Singapore to carry out banking business in Singapore.

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