OREANDA-NEWS. Lenta (LSE, MOEX: LNTA / “Lenta” or the “Company”), one of the largest retail chains in Russia, is pleased to announce it has signed an agreement with OJSC Sberbank of Russia (“Sberbank”) for a RUB 10 billion (approximately USD 280 million ) three-year non-revolving credit facility.

The credit facility has a one-year availability period and matures in April 2017. The Company intends to use the proceeds for refinancing its short-term debt and for general corporate purposes.

Jan Dunning, Chief Executive Officer of Lenta, commented:

“This new credit facility will enable Lenta to continue implementing its expansion program in the coming years. In 2014, we plan to open a total of 24 hypermarkets and 15 supermarkets across Russia and we aim to double our selling space within the next three years. The credit facility signed with one of the largest banks in Russia reinforces Lenta's strong liquidity position and will further diversify our financing sources.”

As of 31 December 2013, Lenta's Net Debt stood at RUB 39.8bn, Net Debt / Adjusted EBITDA was 2.4x and lease adjusted leverage was 2.6x at the end of full year 2013. All of Lenta's debt was denominated in Russian Roubles while over 87% of Lenta's debt was long-term. In January 2014, the Company added a new, undrawn RUB 4.6bn long-term facility from the EBRD. Taking into consideration Lenta's currently available credit facilities, the business is well placed to fund its planned growth.

Lenta is one of the largest retail chains in Russia and the country's second largest hypermarket chain (in terms of 2013 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 80 hypermarkets in 45 cities across Russia and 12 supermarkets in Moscow and the Moscow region, with a total of approximately 528,000 sq.m. of selling space. The average Lenta hypermarket store has selling space of approximately 6,400 sq.m. The Company operates four distribution centres that service hypermarkets and one dedicated to supermarkets.

The Company's price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 27,800 people as of 31 December 2013.

The Company's management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta's largest shareholders include TPG Capital, the European Bank for Reconstruction and Development and VTB Capital Private Equity, all of whom are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: 'LNTA'.