OREANDA-NEWS. OJSC "Magnit", Russia's largest food retailer (the "Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of the transaction on August 28, 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 to the credit agreement N133-VKL/KRD-13, executed between JSC "Tander" and "Absolut Bank" joint-stock commercial bank (open joint-stock company) of October 23, 2013

　

In accordance with the additional agreement N°1 of August 28, 2014 to the guarantee agreement N133-DP/KRD-13 of November 19, 2013 the guarantor shall be solidarily liable to the creditor for the obligations of the borrower under the credit agreement executed on the following terms:

Content of the transaction:

• The credit line limit: 3,200,000,000 (three billion two hundred million) rubles • The granted term of the credit is until October 7, 2014 (inclusive) • The borrower shall pay the interest on credit to the creditor at the rate determined by the credit agreement but not exceeding 20% per annum • The liability of the guarantor is limited by the amount of 4,000,000,000.00 (four billion) rubles

Deadline for the fulfillment of the obligation:

The guarantee is valid until the borrower fulfills obligations to the creditor under the credit agreement but no longer than 1 (one) year from the credit agreement end date

Parties and beneficiaries under transaction:

The creditor - "Absolut Bank" joint-stock commercial bank (open joint-stock company) 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:

The liability of the guarantor is limited by the amount of 4,000,000,000.00 rubles which amounts to 5.6831% of the balance sheet assets of the issuer

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

70,383,864 thousand rubles

Date of the transaction execution:

August 28, 2014 (the date of the conclusion of the additional agreement N°1 to the guarantee agreement N133-DP/KRD-13)

Information on the approval of the transaction:

The transaction was approved by the general shareholders meeting of May 29, 2014 (the minutes of the annual general shareholders meeting of OJSC "Magnit" w/o No. of May 30, 2014)