December 2021 Bank Of Uganda Treasury Bond Auction – 2-Year and 10-Year Bonds Reopened

To close out the year, the Bank of Uganda is reopening two treasury bonds — one short-term and one long-term. The December 2021 auction gives investors a final opportunity this year to earn predictable, government-backed returns whether they’re investing for the near future or planning a decade ahead.

What Bonds Are Being Offered?

On Wednesday, December 1, 2021, the following bonds will be auctioned:

UG12F0709234 – 10.000% Government of Uganda Treasury Bond due 07-Sep-2023 (2-Year Reopening)
UG12K0403325 – 16.375% Government of Uganda Treasury Bond due 04-Mar-2032 (10-Year Reopening)

Bond Term	ISIN	Coupon Rate	Maturity Date	Offering Amount	Withholding Tax
2-Year	UG12F0709234	10.000%	07-Sep-2023	UGX 200 billion	20%
10-Year	UG12K0403325	16.375%	04-Mar-2032	UGX 300 billion	10%

These are reopening bonds, meaning they were issued previously and are being offered again to investors.

Auction Details

Auction Date: Wednesday, December 1, 2021
Settlement Date: Thursday, December 2, 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
Coupon Payments: Interest is paid every 6 months
Bidding Deadline: 10:00 AM on the auction date
Allotment: All successful bids (competitive and non-competitive) will be awarded at the auction’s cut-off price, linked to the highest accepted yield.

Why These Bonds Matter

The 2-year bond offers a secure short-term return for those looking to save for things like school fees, capital for a project, or a financial cushion.
The 10-year bond gives investors a high fixed rate, ideal for long-term goals like retirement, real estate, or future education needs.
With interest paid every 6 months and full principal repaid at maturity, these bonds provide a reliable and stable source of income.
Accessible to all Ugandans starting from just UGX 100,000.

How to Invest with Level Africa

Level Africa makes bond investing easy, secure, and digital — no paperwork needed.

Steps to get started:

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

As 2021 comes to a close, this auction offers a strong way to secure your savings and build future income. Whether you invest for 2 or 10 years, these government bonds remain one of the safest and smartest choices for growing your money.

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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.