August 2023 Bank Of Uganda Treasury Bond Activity – What Investors Should Know

This August was an active month for treasury bond investors in Uganda. Bank of Uganda ran two key auctions — a regular reopening of existing bonds, and a special bond conversion offer for investors holding a maturing bond. These events provided opportunities to earn strong, government-backed returns across various timeframes. Whether you’re new to bonds or planning how to reinvest a maturing one, here’s what happened and what it means for you.

1. Reopening Auction – August 9, 2023

On August 9, 2023, Bank of Uganda reopened two government treasury bonds:

UG12G2905259 – 14.000% Government of Uganda Treasury Bond due 29-May-2025 (2-Year Reopening)
UG12K0302337 – 14.375% Government of Uganda Treasury Bond due 03-Feb-2033 (10-Year Reopening)

Offering Amounts:

Bond Term	ISIN	Maturity Date	Yield Type	Amount Offered	Withholding Tax
2-Year	UG12G2905259	29-May-2025	Reopening	UGX 200 billion	20%
10-Year	UG12K0302337	03-Feb-2033	Reopening	UGX 390 billion	10%

Both bonds allowed competitive and non-competitive bidding, with non-competitive bids starting at UGX 100,000, making them accessible to first-time investors.

2. Bond Conversion Auction – August 23, 2023

Bank of Uganda also held a conversion auction for existing holders of:

UG12J1801248 – 14.000% Government of Uganda Treasury Bond due 18-Jan-2024

This was an opportunity for investors to exchange the maturing bond into longer-term instruments — across 3-year, 10-year, 15-year, or 20-year terms — without cash settlement where possible.

Destination Bonds Offered for Conversion:

Term	ISIN	Coupon	Maturity Date
3-Year	UG12G0907265	13.500%	09-Jul-2026
10-Year	UG12K0302337	14.375%	03-Feb-2033
15-Year	UG12K1405378	16.000%	14-May-2037
20-Year	UG12L1806433	15.000%	18-Jun-2043

Investors could submit bids via their commercial banks through the Central Securities Depository (CSD), and allocation was done at a uniform cut-off price per destination bond.

Why It Matters

Reopenings offer fresh chances to invest in bonds without waiting for new issues.
Conversions help investors manage reinvestment risk by shifting from soon-to-mature bonds into longer-term ones.
Low entry points (from UGX 100,000) make government bonds accessible to individuals, not just institutions.

How to Take Advantage with Level Africa

No paperwork. No broker. Just a few taps.

Here’s how to invest:

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

August 2023 offered two strong opportunities for investors — new entries through the 2Y and 10Y reopenings, and flexible options via bond conversion.

Whether you’re investing short- or long-term, bonds continue to offer stable, government-backed returns. And with Level Africa, getting started is easier than ever.

Start Now – Create an Account on Level Africa

Join our community of like minded investors like yourself today Building Wealth With Level Africa.

Stay updated by following our WhatsApp channel.

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.