The two loans have a combined value of more than Rwf 280 billion and will be repaid over 15 years, including a six-year grace period during which Rwanda will not be required to repay the principal.
The yen-denominated portion marks the first time Rwanda has secured financing in Japanese yen, opening access to a new pool of investors and capital in Asian markets.
The Ministry of Finance and Economic Planning said the financing is backed by guarantees from the World Bank Group and forms part of Rwanda’s strategy to diversify its borrowing sources while securing funding on favourable terms.
The six-year grace period has been structured so that repayment of the principal begins after Rwanda’s existing Eurobond matures. This is intended to prevent a concentration of major debt repayments within the same period and support smoother management of the country’s debt obligations.
The loan proceeds will be used for general budgetary purposes, supporting priority areas including infrastructure, health and nutrition, education, agriculture, social protection and industrial development.
Finance and Economic Planning Minister Yusuf Murangwa said the transaction demonstrates Rwanda’s efforts to explore new financing options while maintaining prudent debt management.
“This second PBG+ [Policy-Based Guarantee] transaction demonstrates Rwanda’s unwavering commitment to innovative, best-practice funding solutions, as we proactively diversify our borrowing sources while maintaining prudent debt management,” Murangwa said.
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