OREANDA-NEWS. On June 27, 2007 X5 Retail Group N.V. (LSE ticker: “FIVE”), Russia's largest retailer in terms of sales, announced that it has raised USD 1 billion through a loan facility with final maturity of 1 year, reported the press-centre of X5 Retail Group N.V.

The mandated lead arrangers of the loan are Goldman Sachs International and Citigroup Global Markets Limited.

The proceeds of the loan will be used to refinance the Group’s debt, including the existing syndicated loan of USD 800 million, which was arranged in 2006 to finance the merger between Pyaterochka and Perekrestok and expansion.

Vitaliy Podolskiy, X5 Retail Group CFO commented: “We are pleased to announce the refinancing of our existing debt on attractive terms that we believe are a testament to the combined strength and financial stability of our enlarged Group. This transaction is a further step in our effort to optimize the Group’s capital structure and enables us to lower funding costs, strengthen our financial flexibility and raise our profile in the international financial community.”

Note to Editors:

X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of 31 March 2007, the Group had 512 company-managed "Pyaterochka" soft discount stores located in the Moscow (232), St. Petersburg (215) and other Russian areas (65), and 169 company-managed "Perekrestok" supermarkets across Central Russia and Ukraine, including 99 stores in Moscow.

As of 31 March 2007, franchisees operated 533 Pyaterochka branded stores across Russia and Kazakhstan.  Perekrestok had 10 stores operated by franchisees in the Moscow area.  

Pyaterochka and Perekrestok have merged their operations as of 18 May 2006 to create the clear leader in the Russian food retail market.  

The Group’s audited pro-forma net sales for the FY 2006 were US $3,551 million, up +50% vs. 2005. Pyaterochka chain provided US $1,973 million of net sales, the Perekrestok chain contributed US $1,496 million of net sales, and Merkado chain contributed US $ 82 million.