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MKIF: Opposite direction
22 June 2009
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[MKIF]
[cheonan]
[project finance]
Despite the lack of appetite for securitization techniques – many bankers blame abuse of securitization as the cause of the credit crunch – Macquarie Korea Infrastructure Fund (MKIF) is successfully pursuing a capital management programme that includes securitising the interest receivables on its infrastructure project portfolio.
The moves are part of an on-going capital management strategy, initially designed to boost profits but now a means to recycle cash that is hard to raise from an illiquid bank market, or bolster short-term debt service on project investments that have been hit hard by the credit crunch rather than going to shareholders for more cash.
The latest MKIF deal – a seven-year securitization programme of subordinate loans provided to Cheonan-Nonsan Expressway Company (CNEC) – is a progression on previous MKIF capital management initiatives
In January 2008 MKIF sold its loan and interest receivables on the Baekyang Tunnel project to BYT Securitization Specialty Company for W172 billion...
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