16th Oct 2009 07:00
MACQUARIE KOREA INFRASTRUCTURE FUND INCHEON GRAND BRIDGE - OPEN TO TRAFFIC
16 October 2009 - Macquarie Korea Infrastructure Fund ("MKIF") today announced that the Incheon Grand Bridge1 will open to traffic at 12:00 am on 19 October. It is a 12.3km, dual three-lane tolled bridge connecting Incheon International Airport to the new developed commercial area of New Songdo International District in Incheon City. The construction was successfully completed in 52 months as originally scheduled on budget at a cost of approximately KRW 1.6 trillion2 by construction companies led by Samsung C&T Corporation. Incheon Grand Bridge is the longest bridge in Korea and the fifth longest cable-stayed bridge in the world.
Incheon Bridge Co., Ltd. ("IBC") is the project company which holds the concession to operate Incheon Grand Bridge for 30 years from the opening. MKIF has 41% (KRW67.5 billion) of IBC's equity and also committed to invest in 57.8% (KRW89.4 billion) of its subordinated loans, making a total investment in the project of KRW156.9 billion.
Incheon Grand Bridge is supported by a Minimum Revenue Guarantee ("MRG") provided by the Ministry of Land, Transport and Maritime Affairs (the "MLTM") for the first 15 year of operations. Under the terms of MRG, the MLTM will provide revenue support to IBC up to 80% of the inflation-adjusted toll revenue forecasted in the concession agreement.
The Incheon Grand Bridge is expected to provide benefits to bridge users and the public including:
Approximately 40-minute reduction in travel time to Incheon International Airport from southern part of Seoul and Incheon City
A substantial enhancement in connectivity to Incheon International Airport from Southern part of Gyeonggi Province and Chungcheong Province via the 2nd and 3rd Kyungin Expressways and Seohaean Expressway
A landmark tourist attraction
The toll rate has been set at KRW 5,500 for small vehicles3 in accordance with the concession agreement.
For further information, please contact:
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Jason Pak Chief Operating Officer Macquarie Korea Infrastructure Fund + 82 2 3705 8550 |
Ally An Investor Relations Macquarie Korea Infrastructure Fund + 82 2 3705 8565 |
This release is not an offer or solicitation for sale of the securities of Macquarie Korea Infrastructure Fund('MKIF') in the United States or in any jurisdiction where any offer, sale or solicitation in respect of such securities is not permitted. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or in any jurisdiction where such offer or sale is not permitted. The securities of MKIF has not been registered under the Securities Ac, and may not be offered or sold in the United States absent registration or exemption from registration under the Securities Act. There will be no public offer of the securities in the United States.
Not for distribution in the United States or in any jurisdiction where any offer, sale or solicitation in respect of the contemplated securities is not permitted.
This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). Any securities will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire any securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
This release does not take into account the investment objectives, financial situation and particular needs of the investor. Before making an investment in MKIF, the investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult an investment adviser if necessary.
MKIF or Macquarie Shinhan Infrastructure Asset Management Co., Ltd. is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of this entity do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.
Investments in MKIF are subject to investment risk, including possible delays in repayment or loss of income and/or capital investment. Neither MKIF, nor any member of the Macquarie Group companies, including MSIAM, guarantees the performance of MKIF, the repayment of capital or the payment of a particular rate of return on MKIF securities.
Attachment: Map of Incheon Grand Bridge
http://www.rns-pdf.londonstockexchange.com/rns/8952A_-2009-10-16.pdf
1 Location-map attached to the disclosure
2 Total project cost, in nominal term
3 For entire route, including connecting road toll charge of KRW 300
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