Rwanda Closes 82 Million Euro, 15 Billion Yen Loan Facility

By Mintesinot Nigussie  |  August 27, 2026

Rwanda has closed a dual-currency commercial loan facility worth 82 million euros and 15 billion Japanese yen, securing 15-year financing while making its first foray into yen-denominated borrowing.

The facility includes a six-year grace period, with principal repayments scheduled to begin after the maturity of Rwanda’s outstanding Eurobond, according to the Ministry of Finance and Economic Planning.

The yen-denominated tranche gives Rwanda access to a new pool of capital and investors in Asia as the government seeks to diversify its borrowing currencies and extend the maturity of its debt.

The financing is backed by the World Bank Group through a guarantee structure that combines an International Development Association Policy-Based Guarantee as first-loss coverage with a Multilateral Investment Guarantee Agency policy providing second-loss protection against non-honouring of a sovereign financial obligation.

The government said the structure enabled it to access commercial funding on competitive terms while spreading debt-service obligations over a longer period and limiting refinancing risks.

The proceeds will be used for general budgetary purposes under the World Bank’s Rwanda Inclusive and Resilient Job Creation Development Policy Financing Operation. The financing will support government programmes covering infrastructure, health and nutrition, education, agriculture, social protection and industrial development.

The transaction extends Rwanda’s recent use of blended financing to access commercial capital. Earlier this year, the government closed a 213 million euro Policy-Based Guarantee loan facility. In 2024, it completed a 200 million euro environmental, social and governance-linked loan backed by a partial credit guarantee from the African Development Fund.

Yusuf Murangwa, Rwanda’s minister of finance and economic planning, said the latest transaction formed part of the government’s strategy to diversify funding 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," Murangwa said.

The loan was closed amid volatility in emerging-market credit markets linked to heightened geopolitical tensions. Rwanda’s credit outlook has improved in recent years, with Moody’s revising its outlook from negative to stable in September 2025 and Fitch Ratings doing the same in March 2026, citing improving fiscal metrics and continued structural reform implementation.

Société Générale and Standard Chartered Bank were the lending partners, while Alvarez & Marsal and White & Case provided advisory support.

Source: FSX Business News