MegaFon secures $600m financing from CDB

MegaFon has signed an agreement with the China Development Bank (CDB) for the financing of up to $600 million.

The financing will go towards the purchase of equipment and services from Huawei Technologies as well as refinancing part of its debt.

"We are very proud to have CDB as our long-standing financial partner," said Ivan Tavrin, CEO of MegaFon. "This new Framework Cooperation Agreement is very important for both MegaFon and CDB as it sets the strategic direction for business development between our organisations."

Last year the operator agreed topurchase at least $600 million of equipment from Huawei. The seven-year contract, which included software and maintenance, was intended to expand mobile networks in Russia.

The operator’s CFO, Gevork Vermishyan, said that despite limited credit supply from financial markets, MegaFon demonstrated a “top notch” Russian corporate borrower profile.

He added: "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 financing backing of CDB." 

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