Rwanda Enters Japanese Yen Market with First-Ever Loan Deal
Rwanda has taken its first step into the Japanese yen market through a loan deal that marks a significant milestone in the country's efforts to diversify its currency base and reduce borrowing costs.
The facility, which consists of 82 million euros and 15 billion yen, carries a 15-year maturity period with a six-year grace period. The yen-denominated portion is Rwanda's first-ever issuance in this currency.
The transaction, which was closed on August 25, 2026, reflects investor confidence in Rwanda's credit fundamentals and fiscal trajectory despite volatility in emerging-market credit markets. According to the Finance Ministry, the deal will be used for general budgetary purposes as part of the World Bank's Rwanda Inclusive and Resilient Job Creation Development Policy Financing Operation.
The facility builds on Rwanda's previous blended-finance transactions, including a 213 million-euro policy-based guarantee loan facility closed earlier this year and a 200 million-euro environmental, social and governance loan backed by the African Development Fund in 2024. The current transaction was supported by a policy-based guarantee from the International Development Association and a MIGA non-honouring of a sovereign financial obligation policy.