Magnit

Capital/Financing Update • Nov 27, 2017

MAGNIT PJSC (MGNT)

27-Nov-2017 / 15:16 CET/CEST

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

Press Release Krasnodar November 27, 2017

PJSC"Magnit" Announces the Execution of the Material Transaction

Krasnodar, Russia (November 27, 2017): Magnit PJSC, one of Russia's leading retailers (the "Company", the "Issuer"; MOEX and LSE: MGNT),announces theexecution ofthe materialtransaction onNovember 23, 2017.

Type of transaction: materialtransactionwhich is notmajor.

Subject of transaction:

Provision by theIssuer ofthe guarantee under the Creditagreement No. 01MP9L on the opening ofthe non-revolving credit linein Russian rubles as of September 8, 2017 (hereinafter - the"Principal agreement") executed between Joint Stock Company "ALFA-BANK" (hereinafter - the "Creditor")and LLC "TK Zelenaya Liniya"(hereinafter - the"Borrower").

Content of transaction:

In accordance with the Guarantee agreement the Guarantor shall be liable to the Creditor for the fulfillment by the Borrower of allcurrent and future obligations under the Principalagreementexecuted on thefollowing termsand conditions:

1. Monetary funds shall be provided to the Borrower in Russian rubles (hereinafter - the "Credits") in the form of the non-revolving credit line (hereinafter - the Credit line") in the maximumamount of 3,500,000,000.00 (Three billion five hundred million pointzero) Russian rubles;

2. The Credits shall be provided under theadditionalagreementsexecuted between the Creditorand the Borrower;

3. The availability period of the Credit line shall be set fromSeptember 8, 2017 to September 8, 2025 inclusive. The Credits can be provided within theAvailability period ofthe Credit line.

The Credits within theAvailability period ofthe Credit line shall be provided for the termnot less than 5 (Five) years, but not more than 8 (Eight) years.

1. The Borrower shall pay theinterest to the Creditor for the use of eachCreditat therate of 1.25%(One point two five percent) perannum.

In cases specified in the Principalagreement, the Creditor shall beentitled to increasetheinterest ratefor the use ofCredits,as wellas for the past crediting periods, but in any case notexceeding 35%(Thirty five percent) perannum.

Other termsand conditions (including the procedure of granting and repayment of the Credits, interestand other payments) shall be determined by the Principalagreement.

The Guarantor's totalliability shall notexceed 13,300,000,000.00 Russian rubles.

Deadline forfulfillment of obligations underthe transaction:

The guarantee terminates in one year from the date of closing of the Credit line or upon the termination of the secured obligations.

Parties and beneficiaries underthe transaction:

The Creditor - Joint Stock Company "ALFA-BANK"; The Guarantor - PublicJoint Stock Company "Magnit"; The Borrower (beneficiary) - LLC "TK Zelenaya Liniya".

The amount of the transaction in the monetary value and as a % of the asset value of the issuer:

Thelimit of the Guarantor's total liability to the Creditor for the fulfillment of obligations by the Borrower under the Principalagreement shall not exceed 13,300,000,000.00 Russian rubles, which amounts to 11.68%ofthe balancesheetassets oftheissuer .

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

113,890,709 thousand rubles

Date of the transaction execution: November 27, 2017

Information on the approval of the transaction:

Thetransaction does not requireapproval(obtaining consent to itsexecution).

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 of June 30, 2017, Magnit operated 35 distribution centers and 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 the reviewed 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 of the largest retailers in Europe.

ISIN: US55953Q2021 Category Code: MSCU TIDM: MGNT LEICode: 2534009KKPTVL99W2Y12 OAM Categories:3.1.Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 4920

End ofAnnouncementEQS News Service