Rwanda has successfully secured $190 million in financing backed by the World Bank through its inaugural borrowing in yen
Rwanda has successfully secured $190 million in financing backed by the World Bank, marking its inaugural borrowing in yen and expanding its funding sources.
Rwanda has obtained around $190 million through a 15-year financing deal supported by the World Bank Group, representing the nation’s inaugural borrowing in Japanese yen.
The financing will assist the government’s overall budgetary requirements and provide resources for essential sectors such as infrastructure, healthcare, education, and agriculture, as Rwanda expands its access to international capital markets.
Approximately fifty percent of the funding will be secured in Japanese yen, signifying Rwanda’s inaugural venture into the yen-denominated debt market.
The Finance Ministry of the country stated that the transaction would aid in diversifying Rwanda’s currency exposure while enhancing its involvement with yen-denominated capital markets and investors throughout Asia.
The remaining financing consists of an €82 million tranche, which is valued at around $95.55 million.
The facility features a six-year grace period, indicating that Rwanda will not commence repayments until after its $620 million international bond matures in August 2031.
The financing is supported by two guaranties from the World Bank Group: one from the Multilateral Investment Guaranty Agency and another from the International Development Association via its Policy-Based Guaranty program.
Meanwhile, S&P Global Ratings noted in a May report that Rwanda’s debt structure continued to be relatively favorable.
The ratings agency reported that Rwanda’s debt to GDP ratio decreased to 72.4% from 73.1% in 2024 and is expected to continue to decline in the upcoming years.
S&P Global Ratings estimates that approximately 90% of Rwanda’s external debt is on highly concessional terms, which assists the country in managing financing costs and minimizing exposure to refinancing and debt rollover pressures.
