Lenta signs amendment to EBRD agreement

Lenta signs amendment to 4.6 billion rouble loan agreement with the European Bank for Reconstruction and Development (EBRD)

Saint-Petersburg, Russia; 30 June 2015 - Lenta LLC, the main operating subsidiary of Lenta Ltd. ("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 621 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:

1 Lenta has changed methodology for calculating number of cities of presence and since 1 May 2015 all cities located in Moscow City and the Moscow region are shown as Moscow.


2 FTE (full-time equivalent). Average FTE for 2014 was 27,200 employees.