Magnit

Capital/Financing Update • Oct 1, 2017

MAGNIT PJSC (MGNT)

29-Sep-2017 / 16:01 CET/CEST

Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

Press Release Krasnodar September 29, 2017

PJSC"Magnit" Announces the Execution of the Material Transaction

Krasnodar, Russia (September 29, 2017): Magnit PJSC, one of Russia's leading retailers (the "Company", the "Issuer"; MOEX and LSE: MGNT),announces theexecution ofthe materialtransaction on September 29, 2017.

Type of transaction: major transaction.

Subject of transaction:

Provision by the Issuer ofthe guarantee under the Generalagreement No. 0052/2017/0108 on the opening of the revolving framework credit line with tiered interest ratesas of September 29, 2017 (hereinafter - the"Agreement") executed between Public Joint Stock Company "Sberbank of Russia"(hereinafter - the"Creditor")and JSC "Tander"(hereinafter - the"Borrower").

Content of transaction:

In accordance with the guarantee agreement the Guarantor shall be liable to the Creditor for the proper fulfillment by the Borrower o f all obligations, both monetary and non-monetary, and obligations that may arise in thefuture under the Agreement concluded on the following conditions:

1. Under theAgreement the Creditorand the Borrower shallexecuteindividualcredit transactions (hereinafter - the Credit transactions) by signing confirmationscontaining theessentials ofthe Credit transaction;

2. Thetotalcredit limitamountshall notexceed 30,000,000,000 (Thirty billion) rubles;

3. The deadlinefor thefullcredits repayment under the Credit transactions is September 28, 2022;

4. Theinterest ratefor thecredit useshall notexceed 30.0 (Thirty) percent perannum.

Otherconditions, procedure of granting and repayment ofthecredit amounts, interestand other payments shall be determined by theAgreement. The Guarantor's totalliability shall notexceed 31,000,000,000 (Thirty one billion) rubles.

Deadline forfulfillment of obligations underthe transaction:

The Guarantor's liability (the guarantee) is effective starting from the date of signing of the Guarantee agreement untilSeptember 28, 2025 inclusive. Before the specified date the Guarantee agreement shall terminate after the fulfillment of all obligations by the Borrower under the Agreement and Credit transactions, orafter the fulfillment of obligations by the Guarantor under the Agreement, or otherwisein accordance with thelegislation ofthe Russian Federation.

Parties and beneficiaries underthe transaction:

The Creditor - PublicJoint Stock Company "Sberbank ofRussia"; The Guarantor - PublicJoint 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 limit of the Guarantor's total liability to the Creditor for the fulfillment of obligations by the Borrower under the Agreement and all Credit transactions shall notexceed 31,000,000,000 (Thirty one billion) rubles, which amounts to 25.2496%ofthe balancesheetassets oftheissuer . Asset value of the issuer as of the closing date of the accounting period preceding the execution of the transaction:

122,774,116,000 rubles

Date of the transaction execution: September 29, 2017

Thetransactionwasapproved by the PJSC "Magnit"Board ofDirectors on July 27, 2017 (the minutes of the PJSC "Magnit" Board of Directors meetingw/o No. of July 27, 2017).

Forfurtherinformation, please contact:

Timothy Post	Head ofInvestor Relations Email: post@magnit.ru Office:+7-861-277-4554 x 17600
Dina Svishcheva	DeputyDirector, Investor Relations Email:Chistyak@magnit.ru Office:+7-861-277-4554 x 15101
MediaInquiries	Media Relations Department press@magnit.ru

Company description:

Public Joint Stock Company "Magnit"is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As ofJune 30, 2017, Magnit operated 35 distribution centersand 14,844 stores (11,114 convenience, 430 hypermarkets and 3,300 drogeriestores) in 2,567 citiesand towns throughout 7 federalregions ofthe Russian Federation.

In accordance with thereviewed IFRS consolidated financialstatements for 1H 2017, Magnit had revenues of RUB 555 billion and an EBITDAof RUB 49 billion. Magnit's localshares are traded on the Moscow Exchange (MOEX: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 ofthe largest retailers in Europe.

ISIN: US55953Q2021 Category Code:MSCU TIDM: MGNT Sequence No.: 4674

End ofAnnouncementEQS News Service