Rwanda has secured approximately $190 million through a 15-year financing arrangement backed by the World Bank Group, marking the country’s first borrowing in Japanese yen.
The financing will support the government’s general budgetary needs and fund key sectors, including infrastructure, healthcare, education and agriculture, as Rwanda broadens its access to international capital markets.
About half of the financing will be raised in Japanese yen, marking Rwanda’s first entry into the yen-denominated debt market.
The country’s Finance Ministry said the transaction would help diversify Rwanda’s currency exposure while strengthening its engagement with yen-denominated capital markets and investors across Asia.
The remaining financing comprises an €82 million tranche, valued at approximately $95.55 million.
The facility includes an initial six-year grace period, meaning Rwanda will not begin repayments until after its outstanding $620 million international bond matures in August 2031.
The financing is backed by two World Bank Group guarantees, one from the Multilateral Investment Guarantee Agency and another from the International Development Association through its Policy-Based Guarantee programme.
Meanwhile, S&P Global Ratings said in a May report that Rwanda’s debt structure remained relatively favourable.
The ratings agency said Rwanda’s debt to GDP ratio had declined to 72.4% from 73.1% in 2024 and is projected to fall further in the coming years.
S&P Global Ratings estimates that about 90% of Rwanda’s external debt is on highly concessional terms, helping the country contain financing costs and reduce exposure to refinancing and debt rollover pressures.
Goodness Anunobi
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