OREANDA-NEWS. PJSC "Magnit", Russia's largest food retailer (the "Company"; MICEX and LSE: MGNT), announces the execution of the transaction on December 8, 2014.

Please be informed that on December 8, 2014 PJSC "Magnit" (the Lender) and JSC "Tander" (the Borrower) executed the related party transaction (material transaction which is not major), 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:

material transaction which is not major; related party transaction

Subject of transaction:

loan of funds

Parties and beneficiaries under transaction:

the Lender - public joint-stock company "Magnit" the Borrower - joint-stock company "Tander"

Maturity:

loan maturity date - 06.12.2017

Transaction amount:

8,756,000,000.00rubles, which amounts to 10.13% of the balance sheet value of assets of the issuer

Interest rate:

12.00% 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:

86,465,293 thousand rubles

The transaction was approved by the General shareholders meeting on September 25, 2014 (minutes of the extraordinary shareholders meeting of PJSC "Magnit" № w/n of September 26, 2014).

Magnit is Russia's largest food retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of September 30, 2014, Magnit operated 25 distribution centers and over 9,020 stores (7,891 convenience, 243 hypermarkets, and 886 drogerie stores) in approximately 2,000 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the reviewed IFRS consolidated financial statements for 1H 2014, Magnit had revenues of USD 9,979 million USD and an EBITDA of USD 1,045 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 one of the largest retailers in Europe.