Rwanda taps yen for first time in $190 million World Bank-backed loan
Rwanda raises about $190 million via a 15-year World Bank-guaranteed loan, its first in yen, to fund budget priorities.
Rwanda has secured a new 15-year loan of roughly $190 million, backed by two World Bank Group guarantees, marking the government's first-ever borrowing in Japanese yen.
The finance ministry said the funds will support general budgetary purposes, with spending directed toward infrastructure, health, education, agriculture, and other industries.
About half of the facility is denominated in yen, a deliberate move to diversify the country's currency exposure. The ministry described the step as signalling Rwanda's readiness for deeper engagement with yen-denominated capital and investors in Asia. The remaining portion is an €82 million tranche, equivalent to about $95.55 million.
The loan includes an initial six-year grace period, meaning repayments will not begin until after Rwanda's only outstanding international market bond, a $620 million note, matures in August 2031.
The facility benefits from guarantees provided by the Multilateral Investment Guarantee Agency and an International Development Association Policy-Based Guarantee.
Ratings agency S&P noted in May that Rwanda's debt structure remains relatively favourable. The debt-to-GDP ratio has eased to 72.4% from 73.1% in 2024 and is projected to decline further in the coming years. S&P estimates that roughly 90% of Rwanda's external debt is highly concessional, which helps contain financing costs and rollover risks.