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X5 Retail In Cooperation Deal With Centrosoyuz To Open Up To 1,000 New Stores

X5 Retail Group N.V. (FIVE.L), a Russian food retailer, announced Wednesday the signing of a cooperation agreement with the Central Union of Consumer Societies of the Russian Federation or Centrosoyuz.

The company noted that the five-year agreement has the potential to lead to the opening of up to 1,000 new stores under the joint brand of COOP-Pyaterochka during the first three years of the project.

COOP-Pyaterochka stores would be opened at Centrosouyz's existing consumer cooperatives. The project will be implemented mostly through franchising.

The parties have also agreed to open up to 5,000 Pyaterocka-based shop-in-shops by 2021 that will sell goods from local farmers and consumer cooperatives. The primary focus of this subleasing partnership is to create a comprehensive product and service offering tailored to the needs of the local customer.

Separately, X5 Retail Group and its unit X5 Finance B.V. announced the pricing of a debut international note issue in the size of RUB 20 billion with maturity in April 2020 at an annual coupon rate of 9.25% paid semi-annually.

The closing and settlement are expected to be completed on 18 April 2017.

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