(“Lenta” or the “Company”), today announces the signing of an amendment to its RUB 4.6bn secured loan agreement with EBRD.

The amendment will have the effect of reducing interest costs. The loan agreement with EBRD was originally signed in January 2014 and will mature in 2022. The loan carries an interest rate based on a 3-month MosPrime benchmark plus an agreed margin.

The Company’s effective weighted-average cost of debt has fallen from 16.6% in 1Q 2015 to approximately 13.5% in 2Q 2015. The combined effects of recent falls in market rates and improved loan terms are projected to further reduce the cost of debt by approximately 125 bps to 12.25% in 3Q 2015 (based on current MosPrime rates).

About Lenta

Lenta is one of the largest retail chains in Russia and the country’s second largest hypermarket chain (in terms of 2014 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 116 hypermarkets in 62 cities across Russia and 27 supermarkets in Moscow, with a total of approximately 751,448 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 6,200 sq.m. The Company operates five owned hypermarket distribution centres.

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 35,100 people as of 31 December 2014². 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 and the European Bank for Reconstruction and Development, both 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’.

A brief video summary on Lenta’s business and its Big Data initiative can be seen here.

For further information please visit www.lentainvestor.com, or contact:

Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Yana Mogileva, PR Manager
Ňel:+7 (812) 336 39 97
E-mail: yana.mogileva@lenta.com

Instinctif Partners
International Media:
Mark Walter
Ňel:+44 (0)20 7457 2020
E-mail: Mark.Walter@instinctif.com

Russian Media:
Anton Karpov
Ňel:+7 495 660 05 91
E-mail: Anton.Karpov@instinctif.com