Russia’s Vnesheconombank has extended a US$399.5mn loan to the Indonesian finance ministry for the purchase of Russian aircraft.

With a tenor of up to seven years, the loan will be used to finance the supply of aircraft to Indonesia under the export contract between Rosoboronexport and the Indonesian Defense Ministry. This is the second loan agreement signed between the two institutions in the past two years.

Vnesheconombank hopes the deal will help promote Russia’s high-technology exports to Southeast Asia, the banks says in a statement.