Rwanda has acquired a €213 million commercial loan facility with a 15-year maturity and a six-year grace period, in a transaction the government says reinforces its strategy of prudent debt management and access to affordable long-term financing.
The Ministry of Finance said the facility was structured through a blended finance model that combines commercial lending with guarantees from multilateral institutions, allowing the country to secure competitive pricing despite challenging global market conditions.
Under the arrangement, Rwanda intends to continue using blended finance solutions to lower borrowing costs, maintain a manageable repayment schedule and diversify sources of funding.
The latest deal follows Rwanda’s first blended finance transaction in 2024, when it secured a €200 million ESG loan backed by a partial credit guarantee from the African Development Fund, the concessional lending arm of the African Development Bank Group.
The new facility is backed by the International Development Association, part of the World Bank Group, and combines an IDA Policy-Based Guarantee with a guarantee from the Multilateral Investment Guarantee Agency (MIGA).
According to officials, the IDA guarantee provides first-loss protection, while MIGA’s Non-Honoring of a Sovereign Financial Obligation cover acts as second-loss protection.
Rwanda is the first country to benefit from MIGA’s revised policy allowing second-loss cover where IDA provides first-loss backing.
The financing was completed during a period of volatility in emerging markets linked to geopolitical tensions, with authorities saying the successful close reflects investor confidence in Rwanda’s fiscal management and economic outlook.
The six-year grace period means principal repayments will begin only after Rwanda’s outstanding Eurobond matures, helping the country avoid refinancing pressure.
The 15-year tenor is also expected to ease long-term debt servicing obligations.
Government officials said proceeds from the facility will support general budget financing under the World Bank’s Rwanda Inclusive and Resilient Job Creation Development Policy Financing Operation. Funding is expected to support reforms and investments in infrastructure, health, education, agriculture, social protection and industrial development.
The announcement comes after recent positive credit rating actions. In March 2026, Fitch Ratings revised Rwanda’s outlook to stable, while Moody’s Ratings affirmed a stable outlook in April.
Finance Minister Yusuf Murangwa said the transaction demonstrates Rwanda’s commitment to innovative and prudent debt management.
He said the blended finance model allows the country to secure long-term funding at competitive rates while safeguarding debt sustainability and maintaining a smooth repayment profile.
