Russian operator MegaFon signed an agreement with the China Development Bank (CDB) for new financing up to $600 million, with part of the funds earmarked for network upgrades.

The operator said the new financing will pay for equipment and services from Huawei, as well as refinancing part of its existing debt. The announcement does not specify what technology the vendor will supply as part of the deal.

MegaFon and Huawei already work together. Just last year, the two companies signed a $600 million agreement for equipment and maintenance. The seven-year contract covered network upgrades, as well as software and maintenance.

The new framework agreement follows ten years of co-operation between MegaFon and the Chinese bank. It also sets forth strategic goals for their future relationship, although no further details are revealed about what those goals entail.

“While credit supply from financial markets remains contracted I am happy that MegaFon firmly demonstrates a top-notch Russian corporate borrower profile,” said Gevork Vermishyan, the operator’s chief financial officer.

“We believe that this new Framework Cooperation Agreement will allow us to underpin and even improve our superior network quality and at the same time effectively manage refinancing and currency risks with the financial backing of CDB,” he added.