12 November 2019

Х5 completes RUB 5 bn corporate bond offering

Moscow, 12November 2019 – X5 Retail Group ("X5" or the "Company"), a leading Russian food retailer (LSE and MOEX ticker: "FIVE"), successfully completed a 001P-07 series rouble-denominated bond offering worth RUB 5 bn issued by LLC X5 Finance.

The coupon rate on the bonds, which have a 2.5-year put option, was set at 6.65% p.a. The Company plans to use the proceeds to cover current expenses, including loan refinancing to improve the current loan portfolio structure.

The offering was arranged by BCS Global Markets and Sberbank CIB, with Raiffeisenbank acting as the placement agent.

Х5 Chief Financial Officer Svetlana Demyashkevich commented: "For the third time in a row this year we have managed to achieve the lowest coupon rate among all local market placements since the beginning of 2019. This transaction marks an all-time low coupon rate for Х5’s public bonds and the lowest coupon among all straight corporate bond offerings in the Russian market since early 2011. We would like to thank our investors and arrangers for their continued support."

Aleksey Kupriyanov, Head of Debt Capital Markets at BCS Global Markets, commented: "We are happy with our successful cooperation with X5, which has enabled us to secure the lowest coupon rate in the corporate bond sector for the second year in a row."