KIGALI, Aug 27 – Rwanda has secured roughly $190 million through a new 15-year loan backed by the World Bank Group, marking the country’s first government borrowing in Japanese yen and expanding its access to Asian capital markets.
The financing will be used for general budgetary purposes, including infrastructure development, health and education programmes, agriculture and other productive sectors, according to Rwanda’s finance ministry.
About half of the financing is denominated in Japanese yen, representing a new funding channel for Rwanda. The government said the transaction would diversify its currency exposure and demonstrate its “readiness for deeper engagement with JPY-denominated capital and investors in Asia.”
The remaining financing consists of an €82 million tranche, valued at approximately $95.55 million. Together, the two components bring the total financing to roughly $190 million.
The loan has a 15-year maturity and includes an initial six-year grace period, meaning Rwanda will not begin repayments until after its outstanding $620 million international bond is scheduled to mature in August 2031. The structure therefore provides the government with additional time before debt-servicing obligations begin.
The financing benefits from two World Bank Group guarantees. One is provided by the Multilateral Investment Guarantee Agency, while the other is an International Development Association Policy-Based Guarantee. Such guarantees are designed to strengthen the credit profile of the financing and facilitate access to longer-term funding.
The transaction comes as Rwanda continues to manage its public debt while seeking to maintain access to affordable external financing. According to S&P Global Ratings in a May assessment, Rwanda’s debt-to-GDP ratio declined to 72.4% in 2025 from 73.1% in 2024 and is expected to fall further over the coming years.
The ratings agency also estimated that around 90% of Rwanda’s external debt is highly concessional. Such financing typically carries below-market interest rates and longer repayment periods, helping limit the government’s financing costs and refinancing, or rollover, risks.
The yen-denominated component is particularly significant because it broadens Rwanda’s funding base beyond its traditional sources of external financing. Greater engagement with Japanese and other Asian investors could provide additional options for future borrowing while spreading currency and investor exposure across different markets.
The financing also gives Rwanda additional fiscal room to support investment in sectors identified as priorities for economic development. How effectively the government deploys the funds, while maintaining its debt-reduction trajectory, will remain important as it balances infrastructure and development needs with fiscal sustainability.
