Rwanda has raised roughly $190 million with a new 15-year World Bank Group-backed loan that will see the government borrow in Japanese yen for the first time, as well as in euros.
The country’s finance ministry said the money would be used for “general budgetary purposes” and go towards infrastructure improvements, health and education as well as agriculture and other industries.
Roughly half of the money is being borrowed in yen, marking the first time Rwanda has raised debt in the Japanese currency.
The finance ministry said it would help diversify its currency base and signalled the country’s “readiness for deeper engagement with JPY-denominated capital and investors in Asia.”
The rest of the loan constituted an €82 million ($95.55 million) tranche.
It also has an initial six-year “grace period” meaning the government won’t make any repayments on the new loan until after its only outstanding international market $620 million bond is due to mature in August 2031.
The new loan benefits from two World Bank Group guarantees – one from the Multilateral Investment Guarantee Agency and another an International Development Association “Policy-Based Guarantee”.
In a report in May, ratings agency S&P said Rwanda’s debt structure remains relatively favourable. Its debt-to-GDP ratio has dipped to 72.4% from 73.1% in 2024 and is projected to decline further in the next few years.
S&P estimates roughly 90% of Rwanda’s external debt is highly concessional, which helps contain its financing costs and its “rollover” risks.
