OREANDA-NEWS. OJSC "Magnit", Russia's largest food retailer (the "Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of the transaction on June 23, 2014.

The essentials of the transaction are as follows:

Type of transaction:

Related party transaction

Subject of transaction:

Provision by the Issuer of the guarantee under the revolving credit line agreement MKRD/RK/003/14 as of June 23, 2014, executed between JSC "Tander" and OJSC JSCB "ROSBANK"

Content of the transaction:

In accordance with the guarantee agreement MKRD/PR/052/14 as of June 23, 2014 the Guarantor shall be gratuitously liable to the Creditor to the extent provided by this Agreement for the performance of obligations by the Borrower under the Revolving credit line agreement MKRD/RK/003/14, executed between the Borrower and the Creditor in Krasnodar as of June 23, 2014, on the following terms:

　

• The credit amount: 3,400,000,000 (three billion four hundred million) rubles

　

• The granted term of the credit is until July 22, 2015 (inclusive)

　

• The Borrower shall pay the interest on credit to the Creditor at the rate determined by the Revolving credit line agreement but not exceeding 12% per annum

　

• The liability of the Guarantor for the performance of all obligations by the Borrower under the Credit agreement shall be limited to the amount of 3,400,000,000.00 (three billion four hundred million) rubles

　

• The guarantee terminates upon the proper performance of obligations by the Borrower under the Credit Agreement or the unilateral change of the Credit Agreement essentials increasing the liability of the Guarantor

Deadline for the fulfillment of the obligations:

July 22, 2015 (credit maturity)

Parties and beneficiaries under transaction:

The creditor - OJSC JSCB "ROSBANK" The guarantor - open joint-stock company "Magnit" The borrower (beneficiary) - joint-stock company "Tander"

The amount of the transaction in the monetary value and as a % of the asset value of the issuer:

3,400,000,000 rubles which amounts to 4.16% of the balance sheet assets of the issuer as of December 31, 2013

Asset value of the issuer as of the closing date of the accounting period preceding the execution of the transaction:

88,717,075 thousand rubles (as of December 31, 2013)

Date of the transaction execution:

June 23, 2014

Information on the approval of the transaction:

The transaction was approved by the General shareholders meeting of May 29, 2014 (Minutes of the general shareholders meeting of OJSC "Magnit" w/o No. of May 29, 2014)