KIGALI, April 15 – Rwanda has secured a €213 million ($251 Million) commercial loan facility with a 15-year maturity and a six-year grace period, advancing its strategy to access long-term, low-cost funding through blended finance structures, according to the Ministry of Finance and Economic Planning.
The transaction, backed by the World Bank Group, combines guarantees from the International Development Association and Multilateral Investment Guarantee Agency, marking the first use of a revised framework that allows layered first-loss and second-loss coverage.
Under the structure, the IDA provides a policy-based guarantee as first-loss protection, while MIGA offers second-loss coverage through its non-honoring of sovereign financial obligations instrument. The approach enhances credit quality and lowers borrowing costs, even amid volatile global market conditions.
The deal builds on Rwanda’s earlier €200 million ESG-linked financing in 2024, supported by the African Development Fund, and reflects a broader shift toward leveraging multilateral guarantees to improve market access.
Proceeds from the facility will support general budget financing aligned with development priorities across infrastructure, healthcare, education, agriculture and industrial growth.
Finance Minister Yusuf Murangwa said the transaction underscores Rwanda’s focus on maintaining debt sustainability while securing competitively priced, long-tenor funding.
The structure also aligns repayments with the maturity profile of Rwanda’s outstanding Eurobond, reducing refinancing risks and smoothing future debt service obligations.
Recent credit actions have reinforced investor confidence, with Fitch Ratings revising the country’s outlook to stable in March, followed by a similar affirmation from Moody’s in April.
The financing was arranged with support from Société Générale and Standard Chartered, highlighting continued international appetite for Rwanda’s sovereign credit.
