Rwanda Secures $190M Yen-Denominated Loan from World Bank Group
Rwanda has secured its first yen-denominated loan from the World Bank Group, marking a significant milestone for the East African nation. The $190 million loan will be used to fund general budgetary purposes, including infrastructure improvements, health and education initiatives, as well as agriculture and other industries.
Half of the loan is being borrowed in Japanese yen, making it the first time Rwanda has raised debt in this currency. This move is expected to help diversify the country's currency base and demonstrate its readiness for deeper engagement with JPY-denominated capital and investors in Asia.
The rest of the loan is an €82 million tranche. The World Bank Group guarantees are also included, providing additional security for the loan. Rwanda has a relatively favorable debt structure, with a debt-to-GDP ratio that has dipped to 72.4% from 73.1% in 2023 and is projected to decline further in the coming years.
The loan benefits from an initial six-year 'grace period', during which the government will not make any repayments on the new loan until after its outstanding international market $620 million bond matures in August 2031.