April 2021 Bank Of Uganda Treasury Bond Auction – 2-Year and 5-Year Bonds Reopened

In April 2021, the Bank of Uganda reopened two treasury bonds — one short-term and one medium-term — offering investors a simple, low-risk way to earn reliable income. Whether you’re planning for near-term needs or mid-range goals, here’s what you need to know about this auction.

What Bonds Were Offered?

On Wednesday, April 14, 2021, Bank of Uganda auctioned the following government bonds:

UG0000001244 – 11.000% Government of Uganda Treasury Bond due 13-Apr-2023 (2-Year Reopening)
UG12J2708269 – 16.625% Government of Uganda Treasury Bond due 27-Aug-2026 (5-Year Reopening)

Bond Term	ISIN	Coupon Rate	Maturity Date	Offering Amount	Withholding Tax
2-Year	UG0000001244	11.000%	13-Apr-2023	UGX 200 billion	20%
5-Year	UG12J2708269	16.625%	27-Aug-2026	UGX 250 billion	20%

These are reopening bonds, meaning they had been previously issued and were made available again for new investment.

Auction Details

Auction Date: Wednesday, April 14, 2021
Settlement Date: Thursday, April 15, 2021 (by 12:00 PM)
Minimum Investment:
- UGX 100,000 for non-competitive bids
- UGX 200.1 million for competitive bids via Primary Dealer Banks
Bidding Deadline: 10:00 AM on auction day
Coupon Payments: Paid every 6 months until maturity
Allotment Method: All successful bids were awarded at the same cut-off price (the lowest price corresponding to the highest accepted yield)

Why These Bonds Matter

The 2-year bond is ideal for people who want to earn stable returns quickly — perfect for saving toward school fees, business capital, or travel.
The 5-year bond offers a higher return and suits mid-term goals like purchasing land, building a house, or funding a business expansion.
Both bonds provide fixed interest every 6 months, and your original investment is fully returned at maturity.
Starting at just UGX 100,000, these investments are open to nearly anyone looking to grow their money safely.

How to Invest with Level Africa

With Level Africa, you don’t need a broker, paperwork, or bank queues.

Here’s how to start investing:

Create an account on Level Africa
Complete KYC with your ID or passport
Go to Treasury Bonds under Products
Choose bonds listed (including reopened 3Y or 20Y bonds)
Fund your Level wallet
Buy bonds — instantly, if marked “Available”
Track interest and returns from your dashboard

Final Thoughts

The April 2021 auction gave investors a strong pair of options for growing their money with confidence. Whether you’re investing for a few years or laying a foundation for the next five, government bonds remain one of the most reliable tools for building financial security.

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Frequently Asked Questions About Treasury Bonds in Uganda

What are government bonds?

Government bonds are a way to lend money to the Government of Uganda. In return, the government pays you a fixed interest rate every 6 months and gives back your full investment at the end of the bond’s term.

How do treasury bonds work in Uganda?

You buy a bond (e.g. 3, 5, or 10 years), the government pays you interest every 6 months, and you get your full capital back when the bond matures. All bonds are issued and regulated by the Bank of Uganda.

What is the minimum amount to invest in government bonds?

You can start investing with UGX 100,000 using a non-competitive bid. No broker is needed when using platforms like Level Africa.

How can I buy government bonds in Uganda?

You need a Central Depository System (CDS) account or a digital investment platform like Level Africa.
Steps:

Create an account on Level Africa
Upload your National ID or Passport (KYC)
Go to “Treasury Bonds” under Products
Choose a bond that matches your investment goals
Deposit funds into your wallet
Place your order — instantly if marked “Available”
Track your bond and earnings from your dashboard

What are the current treasury bond interest rates in Uganda (2025)?

Rates vary by bond type and auction results. For example:

2-Year bond: around 15.75%
10-Year bond: around 16.25%
20-Year bond: up to 18.50%
All rates are set during each auction by the Bank of Uganda.

Are treasury bonds safe in 2025?

Yes. Treasury bonds are backed by the Government of Uganda and are considered among the safest investments, especially for long-term or retirement goals.

Do government bonds pay interest?

Yes. Interest is called a coupon and is paid out every 6 months. You receive it directly to your wallet or bank account.

Can I sell a bond before it matures?

Yes, bonds are transferable and can be rediscounted if you need to exit early, although the resale price depends on current market rates.

How do interest rates affect bonds?

If new bond rates go up, the value of existing bonds on the market may go down (and vice versa). However, if you hold your bond until maturity, you still get your full investment and all promised interest.

What’s the difference between treasury bonds and treasury bills?

Treasury bonds: Long-term (2–25 years), pay interest every 6 months
Treasury bills: Short-term (91–364 days), sold at a discount and paid back in full at maturity

Can individuals buy Bank of Uganda treasury bonds?

Yes. Both individuals and institutions can invest. Many Ugandans now use Level Africa to access bonds directly with no paperwork.

How often are treasury bonds auctioned in Uganda?

Typically, every 28 days. The auction calendar is published annually by the Bank of Uganda, and Level Africa notifies you ahead of each sale.