Rwanda has secured a new commercial loan facility combining €82 million (about Rwf140.8 billion) and 15 billion Japanese yen (about Rwf138.9 billion), bringing the total value of the financing to more than Rwf280 billion.
The 15-year facility includes a six-year grace period before Rwanda begins repaying the principal, according to the Ministry of Finance and Economic Planning (MINECOFIN).
The transaction, which closed on Aug. 25, is part of the government’s efforts to diversify its sources of financing and gain access to new international capital markets, particularly in Japan and other parts of Asia.
Finance Minister Yusuf Murangwa said the yen component represents a new financing opportunity that Rwanda intends to develop further.
“The yen component opens a new financing market for Rwanda, which we intend to continue expanding in the future,” Murangwa said.
The financing is backed by guarantees from the World Bank Group and forms part of Rwanda’s strategy to access international capital on competitive terms while managing its debt obligations.
MINECOFIN said the approach is intended to help lower borrowing costs, improve the timing of debt repayments and provide access to stable sources of financing over the long term.
“This funding exercise reflects Rwanda’s broader debt management strategy, which leverages multilateral guarantees to access international capital on competitive terms,” the ministry said.
The six-year grace period is expected to help the government manage its repayment obligations by spreading debt-service pressures over time.
The proceeds will be channelled through the national budget to support government programmes, including infrastructure, health and nutrition, education, agriculture, social protection and industrial development.
The yen-denominated financing marks a new addition to Rwanda’s external borrowing sources. The country has traditionally accessed international financing through multilateral institutions and borrowing denominated in currencies including the U.S. dollar, euro and the International Monetary Fund’s Special Drawing Rights.
MINECOFIN said the new financing structure would give Rwanda greater flexibility in accessing international capital while supporting its efforts to maintain sustainable debt levels.
