Rwanda has raised about $190mn through a World Bank Group-backed commercial sovereign loan comprising euro and Japanese yen tranches, broadening its funding sources as the government manages elevated debt and external financing requirements.

The facility comprises €82mn ($95.6mn) and ¥15bn, with a 15-year maturity and a six-year grace period, according to Rwanda’s Ministry of Finance and Economic Planning.

The yen tranche is Rwanda’s first borrowing in the Japanese currency, opening access to Asian capital and reducing its reliance on traditional funding currencies. Société Générale and Standard Chartered Bank provided the financing. Alvarez & Marsal advised the government on the transaction, while White & Case acted as legal adviser.

The facility uses guarantees provided through the World Bank Group Guarantee Platform. An International Development Association policy-based guarantee provides first-loss coverage, while the Multilateral Investment Guarantee Agency supplies second-loss protection through its non-honouring of sovereign financial obligations policy.

The structure enabled Rwanda to obtain longer-term commercial financing on semi-concessional terms despite continued volatility in emerging-market credit markets, according to the ministry.

“This second PBG+ transaction demonstrates Rwanda’s unwavering commitment to innovative, best-practice funding solutions, as we proactively diversify our borrowing sources while maintaining prudent debt management,” Finance and Economic Planning Minister Yusuf Murangwa said.

Murangwa said the yen tranche gave Rwanda entry to a new pool of capital that the government intended to develop further. He described blended financing backed by multilateral guarantees as central to the country’s strategy of containing borrowing costs, smoothing repayments and protecting debt sustainability.

Principal repayments will begin only after Rwanda’s outstanding $620mn Eurobond matures in August 2031, reducing the risk of a concentrated refinancing burden. The 15-year tenor will also spread debt-service obligations over a longer period.

The proceeds will support general budget spending under the World Bank’s Inclusive and Resilient Job Creation Development Policy Financing operation. Targeted areas include infrastructure, health and nutrition, education, agriculture, social protection and industrial development.

The transaction follows a €213mn policy-based guarantee loan completed earlier in 2026. Rwanda also raised €200mn through a blended-finance facility backed by a partial African Development Fund guarantee in 2024.

Debt remains elevated, despite the favourable maturity and concessional structure of much of Rwanda’s borrowing. The International Monetary Fund estimated public debt at 73.6% of GDP in 2025 and projected it at 73.1% in 2026, before a gradual decline to 69.1% by 2030. External public debt was forecast to rise from 59.3% to 59.8% of GDP in 2026.

The IMF and World Bank assess Rwanda as facing a moderate risk of debt distress, leaving limited room to absorb further shocks. The country’s debt strategy therefore remains dependent on concessional and semi-concessional support from development partners.

S&P Global Ratings uses a somewhat lower estimate, placing Rwanda’s debt ratio at 72.4%. The agency said about 90% of the country’s external debt was highly concessional, helping to contain financing costs and refinancing risks, according to Reuters.

The IMF approved a $250mn, 38-month Extended Credit Facility for Rwanda in June, including an immediate $35.7mn disbursement. The programme is intended to help the country adjust to tighter global financing conditions while protecting priority social and development spending.

The fund said fiscal consolidation, stronger revenue mobilisation, improved public-investment management and tighter oversight of state-owned enterprises would be needed to contain debt and other fiscal risks.

Rwanda’s economy expanded 10% year on year in the first quarter, driven by 13% industrial growth and a 7% increase in services, according to the National Institute of Statistics of Rwanda.

The IMF nevertheless expects full-year growth to slow to 6.8% from 9.4% in 2025. Average inflation is projected at 10.4%, while the current-account deficit is forecast to widen to 14.1% of GDP, underscoring the external financing pressures behind Rwanda’s efforts to diversify its borrowing base.