Russian retailer Dixy Group has secured credit lines lasting 12 months with VTB Bank and Alfa Bank totalling RUB2.6bn (US$78m).

The size of a credit line from VTB is RUB1.5bn, while Alfa-Bank’s credit line is US$35m, or the equivalent in roubles, Dixy said.

The resources are to be used by the retailer to refinance existing debt and to replenish working capital, the company said today (6 April).

“Considering current difficult environment on the rouble debt markets, securing RUB2.6bn in credit lines from VTB and Alfa-Bank has further strengthened the financial position of the Dixy Group, and reconfirmed the creditors’ confidence in our company,” said Elena Kochetkova, Dixy’s director of corporate finance.

Last month Dixy announced plans to close its VMart convenience stores in St Petersburg in a bid to “optimise costs and increase effectiveness”.