Rwanda Closes Dual-Currency Loan Facility Worth 82 Million Euro and 15 Billion Yen

Rwanda has secured an 82 million euro and 15 billion yen loan facility, marking its first foray into yen-denominated borrowing. The dual-currency commercial loan will provide Rwanda with 15-year financing and a six-year grace period, during which principal repayments will not be due.

The facility is backed by the World Bank Group through a guarantee structure that combines an International Development Association Policy-Based Guarantee as first-loss coverage with a Multilateral Investment Guarantee Agency policy providing second-loss protection against non-honouring of a sovereign financial obligation. The government said this structure allowed it to access commercial funding on competitive terms while spreading debt-service obligations over a longer period and limiting refinancing risks.

The proceeds will be used for general budgetary purposes under the World Bank's Rwanda Inclusive and Resilient Job Creation Development Policy Financing Operation, supporting various government programmes in infrastructure, health, education, agriculture, social protection, and industrial development. This transaction extends Rwanda's recent use of blended financing to access commercial capital.

Yusuf Murangwa, Rwanda's minister of finance and economic planning, stated that the facility's yen-dominated tranche marks the country's entry into a new pool of capital that it intends to build on in the near future. The loan was closed amid volatility in emerging-market credit markets linked to heightened geopolitical tensions.