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Macquarie Korea fund completes $230m bond offering

The KRW 1.7 trillion listed infrastructure fund is nearly fully invested and will use proceeds from the offering to pay down a 5-year credit facility.

 The Macquarie Korea Infrastructure Fund (MKIF) has completed a KRW 250 billion (€161 million; $232 million) offering of unsecured bonds, according to a statement.

The KRW 1.7 trillion fund, which invests in concession companies that operate infrastructure assets in Korea, announced the bond offering last month. The proceeds of the offering will be used to retire part of the fund’s 5-year KRW 500 billion credit facility that was established in May 2007, according to a statement.

MKIF said it had used about KRW 370 billion of the facility thus far. Jason Pak, the chief operating officer of MKIF, said, “We have a credit facility at fund level which we tap into for acquisitions.”

The underwriters of the offering are Woori Securities, Samsung Securities, and Shinhan Investment Corporation.

MKIF is almost fully invested, apart from a $60 million committment marked for an ongoing construction project. It has invested in roads, tunnel, bridge and port concessions.

MKIF is traded on both the London Stock Exchange and the Korea Exchange. Foreign investors account for one-quarter of the fund’s capital, according to the MKIF website. The fund is managed by Macquarie Shinhan Infrastructure Asset Management Company, a joint venture between Macquarie Group and Shinhan Bank.

Bruno Alves contributed reporting for this story.