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Macquarie Korea I F (MKIF)

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Thursday 18 September, 2014

Macquarie Korea I F

Machang Bridge to submit a request for arbitration

RNS Number : 0136S
Macquarie Korea Infrastructure Fund
18 September 2014
 



 

 

 

 

 

 

 

18 September 2014

 

 

 

MACQUARIE KOREA INFRASTRUCTURE FUND
MACHANG BRIDGE
TO SUBMIT A REQUEST FOR ARBITRATION TO THE INTERNATIONAL CHAMBER OF COMMERCE

 

 

Machang Bridge Co., Ltd.(the "MCB" or the "Company"), the concessionaire of Machang Bridge, today announced that it has submitted a request for arbitration to the International Chamber of Commerce (the "ICC") in order to claim KRW13.1 billion of overdue payments from the Provincial Government of Gyeongsangnam-do (the "GSND")(the "Arbitration Process"). The payment incurred with respect to MCB's operation in 2013 and they include Minimum Revenue Guarantee (MRG) support, toll freeze compensation and other reimbursements.

 

The Arbitration Process will be reviewed and determined by an arbitral tribunal which will comprise of three arbitrators in accordance with the Concession Agreement and the Arbitration Rules of the ICC (the "Arbitral Tribunal"). Under normal circumstances, the decision of the Arbitral Tribunal should be made within 12 months and the decision is final and binding to both parties.

 

Machang Bridge is a 1.7km, dual two-lane grand bay bridge directly connecting the cities of Masan and Changwon. MKIF owns 70% of equity (KRW33.9 billion) and 50% of subordinated debt (KRW 79.0 billion) in MCB, constituting 6.8% of MKIF's portfolio[1]. The remaining equity and subordinated debt of MCB are owned by another Korean financial investor. Under the Concession Agreement, MCB has the right to operate and manage Machang Bridge for 30 years and to receive MRG support from GSND over the entire concession term for any shortfalls in revenues earned below 75.78% of the projected forecast revenues outlined in the agreement.

 

 

For further information, please contact:

 

Jason Pak

Chief Operating Officer

Macquarie Korea Infrastructure Fund

+ 82 2 3705 8550

[email protected]

 

Ally An

Investor Relations

Macquarie Korea Infrastructure Fund

+ 82 2 3705 8565

[email protected]

 

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 have not been registered under the Securities Act, 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 Market 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 Korea Asset Management Co., Ltd.(MKAM) 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 MKAM, guarantees the performance of MKIF, the repayment of capital or the payment of a particular rate of return on MKIF securities.

 

 

 

 



[1] On a commitment basis 


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