February 2021 Bank Of Uganda Treasury Bond Auction – 10-Year and 20-Year Bonds Reopened

February 2021 presented another chance for investors to earn safe, long-term returns through government treasury bonds. Bank of Uganda reopened two high-yielding bonds — a 10-year and a 20-year — perfect for individuals planning ahead for major life goals like retirement, property, or legacy building.

What Bonds Were Offered?

On Wednesday, February 3, 2021, the following bonds were reopened:

UG12K0304317 – 17.000% Government of Uganda Treasury Bond due 03-Apr-2031 (10-Year Reopening)
UG12L0111405 – 17.500% Government of Uganda Treasury Bond due 01-Nov-2040 (20-Year Reopening)

Bond Term	ISIN	Coupon Rate	Maturity Date	Offering Amount	Withholding Tax
10-Year	UG12K0304317	17.000%	03-Apr-2031	UGX 250 billion	10%
20-Year	UG12L0111405	17.500%	01-Nov-2040	UGX 250 billion	10%

These bonds had been issued before and were now made available again to new and returning investors.

Auction Details

Auction Date: Wednesday, February 3, 2021
Settlement Date: Thursday, February 4, 2021 (by 12:00 PM)
Bidding Deadline: 10:00 AM on auction day
Minimum Investment:
- UGX 100,000 for non-competitive bids
- UGX 200.1 million for competitive bids via a Primary Dealer Bank
Coupon Payments: Interest paid every 6 months
Allotment: All successful bids were awarded at the same price based on the highest yield accepted

Why These Bonds Matter

The 10-year bond offers stable income for medium-to-long-term goals like a home purchase, advanced education, or land acquisition.
The 20-year bond is well-suited for long-term planning — like building a retirement fund or securing family wealth.
With high coupon rates of 17.000% and 17.500%, these bonds provide strong, predictable returns.
Entry starts at just UGX 100,000, making them accessible to everyday Ugandans.

How to Invest with Level Africa

With Level Africa, you don’t need a broker or paperwork — just a phone and a few simple steps.

Here’s how to start:

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 February 2021 bond auction showed how long-term planning can pay off with strong, reliable returns. Whether you’re saving for a future goal or building passive income, government bonds remain one of the smartest, lowest-risk ways to grow 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.