Rwanda Secures EUR 82m, JPY 15bn Dual-Currency Loan to Diversify Debt Financing

Rwanda has successfully closed a dual-tranche commercial loan facility comprising EUR 82 million and JPY 15 billion, as the government moves to diversify its borrowing sources and strengthen its long-term debt management strategy. The facility has a 15-year maturity period with a six-year grace period, according to the Ministry of Finance and Economic Planning.

The Japanese yen-denominated portion marks Rwanda’s first-ever yen-denominated issuance, giving the country access to a new pool of capital and strengthening its engagement with Japanese-denominated capital and investors in Asia. The transaction comes as Rwanda seeks to secure stable funding sources on competitive terms while managing the cost of debt and maintaining a smoother repayment profile.

The latest financing builds on Rwanda’s growing track record in blended finance. Earlier in 2026, the country closed a EUR 213 million Policy-Based Guarantee (PBG) facility, while in 2024 it completed its inaugural blended finance transaction, a EUR 200 million Environmental, Social and Governance (ESG) Loan backed by a partial credit guarantee from the African Development Fund.

The latest EUR/JPY PBG facility is backed by the World Bank Group and extends Rwanda’s use of multilateral guarantees to secure financing from international capital markets. Its guarantee structure was enabled through the World Bank Group Guarantee Platform, hosted by the Multilateral Investment Guarantee Agency (MIGA), combining an International Development Association (IDA) Policy-Based Guarantee as first-loss coverage with a MIGA Non-Honouring of a Sovereign Financial Obligation policy as second-loss cover.

The transaction was completed against a backdrop of continued volatility in emerging-market credit markets, driven partly by heightened geopolitical tensions. The Ministry said the successful facility demonstrates investor confidence in Rwanda’s credit fundamentals and fiscal trajectory.

The repayment structure was designed to support debt sustainability, with the six-year grace period meaning that principal repayments will begin only after Rwanda’s outstanding Eurobond matures. The 15-year tenor is also expected to provide a longer and more stable repayment profile, helping the government manage its debt obligations while preserving fiscal sustainability.

Proceeds from the facility will be applied to general budgetary purposes in line with the World Bank’s Rwanda Inclusive and Resilient Job Creation Development Policy Financing Operation. The financing is expected to support reforms and investments in areas including infrastructure, health and nutrition, education, agriculture, social protection and industry development.

The transaction also follows positive developments in Rwanda’s sovereign credit outlook. Moody’s revised Rwanda’s rating outlook from Negative to Stable in September 2025, followed by Fitch in March 2026, with both changes reflecting improving fiscal metrics and continued structural reforms.

“This second PBG+ transaction demonstrates Rwanda’s unwavering commitment to innovative, best-practice funding solutions, as we proactively diversify our borrowing sources while maintaining prudent debt management. The facility’s Yen-Dominated tranche marks our entry into a new pool of capital that the country intends to build on in the near future. More broadly, blended semi-concessional finance, structured through our ever-growing partnership with the World Bank Group, remains the hallmark of our borrowing strategy, helping us maintain a smooth repayment profile and safeguard debt sustainability. We appreciate our lending partners Société Générale and Standard Chartered Bank, for their trust and collaboration, as well as Alvarez & Marsal and White & Case for their valued advice throughout this process.”

– Yusuf Murangwa, Minister of Finance and Economic Planning, Rwanda