The Smartest Investment for February 2025: Treasury Bonds Auction Breakdown

Looking for a safe, predictable, and rewarding way to invest? Treasury Bonds might be the opportunity you need.

On February 19, 2025, the Bank of Uganda will auction 2-Year, 5-Year, and 15-Year Treasury Bonds, with a total target raise of UGX 990 billion.

If you’re new to investing or want to understand how to participate in this auction, our team is here to help.

Call or WhatsApp 0765 972769 for investment guidance.

What Are Treasury Bonds?

Treasury Bonds are risk-free government-backed investments that allow you to:

Earn guaranteed interest every 6 months
Get your full investment back at the end of the bond’s term
Enjoy stable and predictable cash flow

With this auction, you can choose between:

A short-term 2-year bond
A medium-term 5-year bond
A long-term 15-year bond

Not sure which one is right for you? We’ll guide you through it.

The Bonds on Offer

2-Year Bond (UG12G0907265)

Coupon Rate: 13.5%
Withholding Tax: 20%
Maturity Date: July 2026
Why It’s Attractive:
- Great for short-term investors who want returns in just two years.

5-Year Bond (UG0000001533)

Coupon Rate: 14.25%
Withholding Tax: 10%
Maturity Date: August 2029
Why It’s Attractive:
- Provides medium-term returns with strong security.
- Pays interest every February and August, making it ideal for stable income.

15-Year Bond (UG12K2306393)

Coupon Rate: 15.8%
Withholding Tax: 10%
Maturity Date: June 2039
Why It’s Attractive:
- Ideal for long-term wealth-building with the highest coupon rate.
- First coupon payment in just 6 months.

Why Treasury Bonds Are a Smart Investment in 2025

Risk-Free: Government-backed security.
Steady Cash Flow: Interest paid every 6 months.
Tax-Efficient: Withholding tax as low as 10%.
Flexible Options: Choose 2, 5, or 15 years based on your goals.

How to Invest Through Level Africa:

Contact the Level Africa team for investment advisory and guidance on the best bond option for you.
Make payment to Level Africa’s bank account before February 18, 2025, midday to secure your investment.
We handle the investment process on your behalf, ensuring seamless participation in the auction.

Want to Learn More? Let’s Talk!

Our team at Level Africa is ready to help you understand and participate in this auction.

Call or WhatsApp 0765 972769 for investment guidance.

Frequently Asked Questions (FAQs) About Treasury Bonds & the February 19, 2025, Auction

Whether you’re new to Treasury Bonds or looking to participate in the upcoming February 19, 2025, auction, here are answers to the most frequently asked questions.

1. What are Treasury Bonds?

Treasury Bonds are government-backed investment securities where investors lend money to the government in exchange for fixed interest payments (coupons) every six months until the bond matures. At the end of the term, the investor receives their full principal amount.

2. Why should I invest in Treasury Bonds?

Low Risk – Treasury Bonds are backed by the government, making them one of the safest investments.
Guaranteed Returns – You receive interest (coupon) payments every 6 months.
Flexible Tenures – Choose from short-term (2 years), medium-term (5 years), or long-term (15 years) bonds.
Tax Efficiency – Lower withholding tax (10%-20%) compared to other investment options.
Diversification – A great addition to any investment portfolio for stability and passive income.

3. What Treasury Bonds are available in the February 19 auction?

The Bank of Uganda is offering three Treasury Bonds in this auction:

2-Year Bond (UG12G0907265)

Coupon Rate: 13.5%
Withholding Tax: 20%
Maturity Date: July 2026
Ideal For: Short-term investors looking for safe and quick returns.

5-Year Bond (UG0000001533)

Coupon Rate: 14.25%
Withholding Tax: 10%
Maturity Date: August 2029
Ideal For: Investors seeking a medium-term, stable investment option.

15-Year Bond (UG12K2306393)

Coupon Rate: 15.8%
Withholding Tax: 10%
Maturity Date: June 2039
Ideal For: Long-term investors looking for high fixed returns and wealth preservation.

4. What is the minimum amount I can invest?

Non-Competitive Bid (Ideal for beginners) – Minimum UGX 100,000
Competitive Bid (For larger investors) – Minimum UGX 200 million

If you’re new, the non-competitive bid is the easiest way to get started!

5. What is a “Coupon” Payment?

A coupon payment is the fixed interest the government pays you every six months for investing in Treasury Bonds. For example, if you buy a UGX 100 million 15-year bond at 15.8% coupon rate, you will receive:

UGX 15.8 million per year (paid in two installments).
Total interest earned over 15 years: UGX 237 million + your UGX 100 million principal back at maturity.

6. What is the Auction Process & Key Dates?

Auction Date: February 19, 2025 (Submit bids before 10:00 AM)
Settlement Date: February 20, 2025 (Payment & bond allocation).
First Coupon Payment: Paid every 6 months based on the bond schedule.

💡 Tip: To get the best experience, start preparing early—speak with your bank and understand your investment goals.

7. What are the risks involved?

Market Price Fluctuations – If you sell your bond before maturity, its market price may be higher or lower depending on interest rates.
Time Commitment – Bonds require patience, especially long-term bonds like the 15-year option.
Inflation Risk – While Treasury Bonds offer fixed returns, inflation could reduce the purchasing power of future payments.

However, holding bonds until maturity ensures you get your full principal and all coupon payments.Non-Competitive Bid (Ideal for beginners) – Minimum UGX 100,000

If you’re new, the non-competitive bid is the easiest way to get started!

8. Can I sell my bond before it matures?

Yes! Treasury Bonds can be sold on the secondary market before maturity. If interest rates drop, your bond’s price may increase, allowing you to sell at a profit.

9. How do I get started today?

Call or WhatsApp 0765 972769 to speak to an investment advisor.
Investing in Treasury Bonds is a safe and smart way to earn guaranteed returns in 2025. Don’t miss out—start now!