Rwanda has finalised a dual-currency commercial loan comprising €82 million and ¥15 billion, equivalent to approximately Rwf279 billion. The financing has a 15-year repayment period and a six-year grace period, according to a statement issued by the Ministry of Finance and Economic Planning on August 25.
Structured in separate euro and Japanese yen portions, the facility marks Rwanda’s first borrowing denominated in yen. The government says the arrangement will diversify its funding sources, reduce borrowing costs and provide greater stability in managing long-term repayments.
The Chamber of Deputies approved the two financing agreements on August 20, with all 66 lawmakers present voting in favour. The agreements had been signed in Kigali on August 13.
Documents presented to Parliament placed the precise amounts at €81.71 million and ¥15.02 billion. The euro loan carries an interest rate of 0.57 per cent, while the yen portion has a rate of 0.63 per cent. Both portions will be repaid over 15 years following the six-year grace period.
Finance and Economic Planning Minister Yusuf Murangwa said the yen-denominated financing would give Rwanda access to an additional source of international capital. “The facility’s Yen-Denominated tranche marks our entry into a new pool of capital that the country intends to build on in the near future,” Murangwa said.
The repayment schedule was structured so that principal payments begin only after Rwanda’s outstanding Eurobond matures. According to the ministry, this will prevent several major debt obligations from falling due simultaneously and help spread debt-servicing costs over a longer period. The commercial facility is supported by guarantees arranged through the World Bank Group Guarantee Platform, which is housed at the Multilateral Investment Guarantee Agency (MIGA).
The structure combines an International Development Association policy-based guarantee providing first-loss coverage with a MIGA policy covering the non-honouring of sovereign financial obligations as second-loss protection.
The ministry said the guarantees reduced the lenders’ exposure and enabled Rwanda to obtain financing on competitive terms despite volatility in emerging credit markets and heightened geopolitical tensions.
Société Générale and Standard Chartered Bank are the lending partners involved in the transaction.
Murangwa said the arrangement reflects Rwanda’s strategy of using blended, semi-concessional financing to diversify borrowing while maintaining debt sustainability. He also thanked Alvarez & Marsal and White & Case for advising the government during the transaction.
The proceeds will be used for general budgetary purposes under the World Bank-supported Rwanda Inclusive and Resilient Job Creation Development Policy Financing programme.
The programme supports reforms and investments in infrastructure, health and nutrition, education, agriculture, social protection and industrial development.
It also seeks to strengthen fiscal sustainability, remove barriers to employment creation and support industrial and agricultural transformation.
The latest financing builds on other blended-finance transactions concluded by Rwanda. Earlier in 2026, the country closed a €213 million policy-based guarantee loan facility.
In 2024, Rwanda completed its first blended-finance transaction, an environmental, social and governance loan of €200 million backed by a partial credit guarantee from the African Development Fund.
The Ministry of Finance said the latest agreement was concluded despite continuing volatility in emerging markets, describing the terms secured as an indication of investor confidence in Rwanda’s credit fundamentals and fiscal direction.
It also cited recent decisions by Moody’s and Fitch to revise Rwanda’s credit-rating outlook from negative to stable in September 2025 and March 2026, respectively, reflecting improved fiscal indicators and continued implementation of structural reforms.
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