OREANDA -NEWS. OJSC “Magnit”, Russia's largest retailer (the “Company”; MICEX and LSE: MGNT), announces the execution of the transaction on November 5, 2013.

Please be informed that on November 5, 2013 OJSC “Magnit” (the Lender) and JSC “Tander” (the Borrower) executed the related party transaction, according to which the Lender provides the loan of funds to the Borrower which is to be repaid by the Borrower within the period determined by the contract. The repayment of the loan and (or) the interest may be effected by the Borrower in advance, without written notice to the Lender of the loan repayment, by means of transfer of the loan to the bank details specified in the contract or otherwise not contradictory to the Civil Code of the Russian Federation (offset of mutual claims, assignment of a claim, etc.).

The essentials of the transaction are as follows:

Type of transaction:

related party transaction

Subject of transaction:

loan of funds

Parties and beneficiaries under transaction:

the Lender - open joint-stock company “Magnit” the Borrower - joint-stock company “Tander”

Maturity:

loan maturity date - 02.11.2016

Transaction amount:

3,800,000,000.00 rubles, which amounts to 5.55% of the balance sheet value of assets of the issuer

Interest rate

8.35% per annum

The assets value of the issuer as of the closing date of the reporting period preceding the transaction execution and in respect of which the deadline for filing the accounting (financial) report has passed:

68,422,621 thousand rubles

The transaction was approved by the annual general shareholders meeting (minutes of the annual general shareholders meeting of OJSC “Magnit” N° w/N° of May 24, 2013).

Magnit is Russia's largest retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of September 30, 2013, Magnit operated 19 distribution centers and over 7,600 stores (6,783 convenience, 178 hypermarkets, and 685 cosmetics) in more than 1,760 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with its reviewed IFRS consolidated financial statements, Magnit had 1H 2013 revenues of USD 8.7 billion USD and an EBITDA of USD 890 million USD. Magnit's local shares are traded on the Moscow Stock Exchange (MICEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB. Measured by market capitalization, Magnit is now Europe's 2nd largest food retailer.