The loans will be repaid over 15 years, with a six-year grace period during which Rwanda will not repay the principal amount.
The €82 million loan is worth more than Rwf140 billion, while the ¥15 billion Japanese yen loan is valued at more than Rwf138 billion.
This marks the first time Rwanda has secured a loan denominated in Japanese yen.
According to the Ministry of Finance and Economic Planning, the move represents an important step in diversifying Rwanda’s borrowing sources and strengthening the country’s links with investors and financial markets in Asia.
The financing was secured with a guarantee from the World Bank Group as part of Rwanda’s broader strategy to access affordable financing while maintaining prudent management of public debt.
The six-year grace period was structured to allow Rwanda to begin repaying the principal after its existing Eurobond has matured. This approach is intended to prevent the country from facing a large concentration of debt repayments at the same time.
The funds from the new loans will support Rwanda’s national budget, with priority areas including infrastructure, health and nutrition, education, agriculture, social protection and industrial development.
Finance and Economic Planning Minister Yusuf Murangwa said accessing financing in Japanese yen will help Rwanda broaden its funding sources and continue securing loans on sustainable terms.
The new financing is also expected to strengthen Rwanda’s access to international capital markets while reducing reliance on a limited number of currencies and financing sources.
