Rwanda has secured a €213 million (approximately Rwf367 billion) blended finance deal backed by multiple international financial institutions, the Ministry of Finance and Economic Planning announced.
The funding, revealed on April 15, takes the form of a commercial loan with a 15-year maturity and a six-year grace period. It is expected to support the national budget, particularly in key sectors with strong potential for job creation.
According to the ministry, the transaction will support reform policies and investments across infrastructure, health and nutrition, education, agriculture, social protection, and industry development.
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The transaction, the ministry observed, illustrates the country’s prudent debt management strategy, achieving record-low pricing amid challenging market conditions
The ministry said Rwanda intends to systematically favour blended finance solutions, leveraging credit enhancement from multilateral institutions to access international capital on competitive terms.
By anchoring its borrowing strategy in these principles, Rwanda continues to set a benchmark for responsible fiscal stewardship among emerging and frontier market sovereigns.
Yusuf Murangwa, the Minister of Finance and Economic Planning, said this financing demonstrates the country’s unwavering commitment to innovative and prudent debt management.
"Blended finance is at the heart of our borrowing strategy, enabling us to secure long-term funding at an exceptionally competitive cost, while maintaining a smooth repayment profile and safeguarding our debt sustainability,” he noted.
"We are grateful for the confidence of our lending partners, Société Générale and Standard Chartered Bank, and the expert guidance of Alvarez & Marsal and White & Case throughout this process,” he added.
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Rwanda’s track record
This new facility builds on Rwanda’s established track record in blended finance, the ministry stated.
In 2024, the country successfully closed its inaugural blended finance transaction—a €200 million Environmental, Social, Governance (ESG) loan backed by a partial credit guarantee from the African Development Fund (ADF), the concessional lending arm of the African Development Bank Group.
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The current transaction, backed by International Development Association (IDA), marks a natural progression of Rwanda’s financing strategy.
It deepens the country’s engagement with a broader range of multilateral guarantee providers while reinforcing its commitment to innovative and sustainable borrowing, the ministry said.
According to the ministry, the World Bank Group’s Guarantee Platform—housed within Multilateral Investment Guarantee Agency (MIGA)—has made it possible to combine an IDA Policy-Based Guarantee (PBG) with a MIGA guarantee.
Under this structure, the IDA PBG provides first-loss coverage, while MIGA’s Non-Honoring of a Sovereign Financial Obligation policy offers second-loss protection.
This transaction follows MIGA’s recent relaxation of eligibility criteria for second-loss cover when IDA provides first-loss protection, with Rwanda becoming the first country to benefit from the revised policy.
The transaction was executed against a backdrop of significant volatility in emerging market credit markets, driven by heightened global geopolitical tensions.
Rwanda’s ability to close this financing on highly favourable terms in such an environment underscores strong international investor confidence in the country’s credit fundamentals and fiscal trajectory.
The deal closing follows recent positive credit developments for the Country. In March 2026, Fitch revised Rwanda’s rating outlook to Stable, followed by Moody’s affirmation of a Stable outlook in April 2026.
These actions, the ministry said, reflect improving fiscal metrics and the continued implementation of structural reforms under the Government’s medium-term development programme.