Rwanda has secured ¥15 billion (about Rwf138.9 billion) in its first-ever yen-denominated financing, as part of a dual-currency commercial loan facility that also includes €82 million (about Rwf140.8 billion), the Ministry of Finance and Economic Planning said. The transaction, which closed on August 25, has a 15-year maturity and a six-year grace period, according to the ministry. The yen-denominated tranche marks Rwanda’s entry into a new source of international capital and is expected to expand the country’s access to Japanese and other Asian investors. ALSO READ: Rwanda ranks among Africa's top performers in debt transparency The government’s external financing has traditionally included borrowing from multilateral creditors and financing denominated in currencies such as the US dollar, euro and Special Drawing Rights (SDR). The Ministry of Finance said the new facility will help diversify Rwanda’s currency base and borrowing sources while providing access to a wider pool of international capital. “This funding exercise reflects Rwanda's broader debt management strategy, which leverages multilateral guarantees to access international capital on competitive terms, in pursuit of a low cost of debt, a smoother repayment profile, and enhanced access to stable funding sources over the long term,” the ministry said in a statement on Wednesday. Yusuf Murangwa, the Minister of Finance and Economic Planning, said the transaction is part of efforts to diversify the country's financing sources while maintaining prudent debt management. He said the yen-denominated tranche opens up a new source of capital that Rwanda intends to build on in the future. ALSO READ: Rwanda’s economic outlook revised to stable “More broadly, blended semi-concessional finance, structured through our ever-growing partnership with the World Bank Group, remains the hallmark of our borrowing strategy, helping us maintain a smooth repayment profile and safeguard debt sustainability,” Murangwa said. The financing is backed by the World Bank Group through a Policy-Based Guarantee (PBG), which helps the country secure commercial financing on competitive terms. The guarantee has two layers, with the International Development Association (IDA) providing first-loss coverage and the Multilateral Investment Guarantee Agency (MIGA) providing additional protection through its Non-Honouring of a Sovereign Financial Obligation policy. The ministry said the repayment structure was designed to support debt sustainability and avoid a concentration of repayments. The six-year grace period was negotiated so that principal repayments will begin only after Rwanda’s outstanding Eurobond matures. The 15-year maturity will then allow the government to spread debt-service obligations over a longer period. The proceeds will be used for general budgetary purposes in line with the World Bank’s Rwanda Inclusive and Resilient Job Creation Development Policy Financing Operation. The financing will support reforms and investments in infrastructure, health and nutrition, education, agriculture, social protection and industry development, according to the ministry. The transaction was supported by Société Générale and Standard Chartered Bank as lending partners, while Alvarez & Marsal and White & Case provided advisory support. The deal comes amid an improving credit outlook for Rwanda, with Moody’s revising its outlook from negative to stable in September 2025, followed by Fitch in March this year.
