Global law firm Clifford Chance has advised The Republic of Rwanda in its capacity as borrower in relation to a €200,000,000 sustainable commercial loan financing from JP Morgan which benefits from partial credit guarantee support from the African Development Fund (the fund forms part of the African Development Bank (AfDB) Group)).

The Republic of Rwanda shall apply amounts received by it under the financing exclusively towards the financing of eligible expenditures and eligible sustainable projects in compliance with its Environmental, Social, and Governance (ESG) framework designed to mobilize financing through the issuance of sovereign social, green or sustainability instruments, including bonds and loans by The Republic of Rwanda as published in March 2024, incorporating applicable green loan principles and social loan principles published by the Loan Market Association.

The ESG framework serves as a comprehensive set of criteria assessing Rwanda’s management of environmental impact, social policies, and governance practices. The financing will be channeled into projects such as the Urban Economic Development Project, Government Funded Modern Irrigation (GFI) and the Sustainable Agriculture Intensification and Food Security Project (SAIP).

The transaction illustrates The Republic of Rwanda’s commitment to mobilise financial resources for national economic development in line with its Vision 2050 (which sets out a shared vision for “the Rwanda we want” by 2050) and contributes towards the achievement of a carbon neutral and climate resilient economy underpinned by the sustainable use of natural resources and a high quality natural and built environment, to ensure a better Rwanda for future generations.

The Clifford Chance team was led by Partner and head of the firm’s sovereign debt practice Deborah Zandstra and Senior Associate Michael Obiri-Darko, with the support of Associate Domenico Cullura, Senior Associate Azam Taiyeb and Trainee Solicitor Ruaidhri Power

Clifford Chance partner Deborah Zandstra commented: “We are delighted to have advised Rwanda on this ground-breaking transaction for the country which sets a benchmark for other ESG linked transactions in support of Rwanda’s economic growth and prosperity objectives.”

Clifford Chance advises on many sovereign and quasi sovereign transactions in the African market.