Magnit is planning a major investment in Russia this year to extend its reach in the country, with local reports claiming that the group could spend over US$1bn (€696m) in increasing its store portfolio and improving other areas.
The group is set to introduce a new bonds placement in order to raise the funds, according to foodbizdaily.com, with Magnit expected to invest the money in 500 small stores and 30 hypermarkets as well as distribution facilities and logistics.
A yearly investment of US$1bn would represent a record for the Russian retail market, although Magnit's general director Sergei Galitsky told the publication that Magnit had not yet determined when the bond placement would take place.
'The amount of investments in 2010 will be the largest in the history of the company, focusing on the development of traditional directions for us,' the group said in a statement. 'The development of logistics, the construction of new distribution centres and an increase of our truck fleet will e among the top priorities of the company, aimed at increasing the attractiveness of the chain.'
Magnit currently operates around 3,000 stores in Russia.
