29.12.2008 /Personal loans
 B.I.N.BANK has refinanced the debt of Agrotorg-Rostov: X5 Retail Group is to acquire Pyaterochka franchisee in Rostov region
Moscow, December 29, 2008. Today X5 Retail Group N.V., Russia’s largest retailer in terms of sales, announced that it has signed an agreement to acquire 100% of the business and assets of JSC “Agrotorg-Rostov” – “Pyaterochka” franchisee in Rostov region. Total amount of X5 Retail Group commitment is about RUB 400 mln. (about US $15 mln.), including refinancing of the debt to B.I.N.BANK and trade accounts payable to suppliers and employees. In order to refinance the debt of JSC “Agrotorg-Rostov” X5 and B.I.N.BANK have signed a credit agreement in the amount of RUB 282 mln. to be repaid in 1.5 years. In total, JSC “Agrotorg-Rostov” has real estate of about 14 thousand m2, including sales and office spaces in Rostov-on-Don and Rostov region as well as network of the rent stores. It is likely X5 will decide to sell some properties of JSC “Agrotorg-Rostov”. The company plans to operate 15 “Pyaterochka” discount stores (sales area is approximately 7 thousand m2), 10 of them are in ownership. As a result of the transaction, X5 will strengthen its geographic presence in the south of Russia, with a better balanced multi-format store portfolio. Mikhail Shishkhanov, President of B.I.N.BANK pointed out: “In a difficult economic environment, B.I.N.BANK commits to work with clients who have been affected by volatile financial market conditions. We are pleased with this agreement with X5 that will provide for the refinancing of JSC “Agrotorg-Rostov” debt and thus will enable its continuous trading activity.” Lev Khasis, X5 Retail Group CEO, commented: “We have always considered franchisee buy-outs as part of X5’s expansion strategy. In current market conditions, we have increased our focus on these potential opportunities as a consequence of the liquidity situation many players are facing. The buy-out of JSC “Agrotorg-Rostov” is the first transaction in an inevitable process of Russian retail consolidation, and we are considering other potential buy-outs of franchisee businesses or assets. X5 is acting as a source of strength in Russian retail, ensuring that stores continue to operate and stabilizing payments to suppliers to maintain the flow of deliveries to the consumer.”
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