KIGALI
Rwanda closed its first yen-denominated borrowing as part of a dual-currency commercial loan facility, expanding its access to Asian capital while using multilateral guarantees to secure better terms, the Finance Ministry said.
The facility comprises 82 million euros and 15 billion yen, with a 15-year maturity and a six-year grace period, according to a statement from the Ministry of Finance and Economic Planning. The yen portion marks Rwanda’s first-ever yen-denominated issuance, the ministry said.
The ministry announced the closing on Aug. 25, 2026. It said 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 transaction is part of Rwanda’s broader strategy to diversify its currency base, reduce borrowing costs and smooth future repayments. The government said the deal reflects investor confidence in Rwanda’s credit fundamentals and fiscal trajectory despite volatility in emerging-market credit markets.
The facility builds on Rwanda’s previous blended-finance transactions. Earlier this year, the country closed a 213 million-euro policy-based guarantee loan facility, and in 2024 it completed a 200 million-euro environmental, social and governance loan backed by a partial credit guarantee from the African Development Fund, according to the statement.
The current transaction was supported by a policy-based guarantee from the International Development Association and a MIGA non-honouring of a sovereign financial obligation policy, the ministry said. MIGA is part of the World Bank Group.
Principal repayments will begin after Rwanda’s outstanding eurobond maturities, helping smooth the government’s debt-service obligations, according to the statement.
The proceeds will support reforms and investments in infrastructure, health and nutrition, education, agriculture, social protection and industry development, the ministry said.
“This second PBG+ transaction demonstrates Rwanda’s unwavering commitment to innovative, best-practice funding solutions, as we proactively diversify our borrowing sources while maintaining prudent debt management,” Finance Minister Yusuf Murangwa said in the statement.
Moody’s revised Rwanda’s rating outlook to stable from negative on Sept. 19, 2025, while Fitch made a similar revision on March 13, 2026, citing improving fiscal metrics and continued structural reform implementation, according to the ministry.
