February 2023 Bank Of Uganda Treasury Bond Auctions – What Investors Should Know
February 2023 featured two bond opportunities from the Bank of Uganda — a bond conversion auction for maturing investors and a scheduled reopening auction with two long-term options. Whether you’re reinvesting or buying into bonds for the first time, here’s what happened and how to get involved.
1. February 8, 2023 – Bond Conversion Auction
Investors holding the bond UG0000001244 – 11.000% maturing 13-Apr-2023 were invited to convert it into any of five benchmark bonds. This avoided a cash payout and allowed continued earning through newer bonds.
Conversion Destination Bonds Offered:
| Term | ISIN | Coupon Rate | Maturity Date |
|---|---|---|---|
| 3-Year | UG12G2905259 | 14.000% | 29-May-2025 |
| 5-Year | UG12J1301280 | 14.125% | 13-Jan-2028 |
| 10-Year | UG12J2005328 | 15.000% | 20-May-2032 |
| 15-Year | UG12K1405378 | 16.000% | 14-May-2037 |
| 20-Year | UG12L1408420 | 18.500% | 14-Aug-2042 |
Investors submitted bids and selected which bond(s) they wanted to convert into, with all successful bids priced uniformly at the cut-off yield.
2. February 22, 2023 – Scheduled Bond Auction
This was a regular reopening auction offering:
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UG12J1301280 – 14.125% Government of Uganda Treasury Bond due 13-Jan-2028 (5-Year Reopening)
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UG12L1408420 – 18.500% Government of Uganda Treasury Bond due 14-Aug-2042 (20-Year Reopening)
| Bond Term | ISIN | Coupon Rate | Maturity Date | Offering Amount | Withholding Tax |
|---|---|---|---|---|---|
| 5-Year | UG12J1301280 | 14.125% | 13-Jan-2028 | UGX 200 billion | 20% |
| 20-Year | UG12L1408420 | 18.500% | 14-Aug-2042 | UGX 350 billion | 10% |
Auction Date: February 22, 2023
Settlement Date: February 23, 2023
Minimum Investment:
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UGX 100,000 (non-competitive)
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UGX 200.1 million (competitive via primary dealer banks)
Interest: Paid every 6 months
Allotment: All successful bids awarded at the same price (cut-off yield)
Why These Auctions Matter
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Conversions offer investors a way to stay invested without waiting for bond maturity payouts.
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Scheduled auctions give everyone, including first-time investors, a chance to earn government-backed returns.
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With rates like 18.5% for the 20-year bond, returns are among the highest for fixed-income options in Uganda.
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You can start investing from as low as UGX 100,000 — and earn interest every 6 months.
How to Invest with Level Africa
Level Africa makes it easy to access government bonds — no paperwork, no brokers.
Steps to get started:
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Create an account on Level Africa
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Complete KYC with your ID or passport
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Go to Treasury Bonds under Products
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Choose bonds listed (including reopened 3Y or 20Y bonds)
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Fund your Level wallet
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Buy bonds — instantly, if marked “Available”
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Track interest and returns from your dashboard
Final Thoughts
February 2023 showed how flexible and rewarding treasury bonds can be — from converting maturing bonds to locking in new long-term rates. With returns above 14% and full government backing, treasury bonds remain one of the smartest ways to grow your wealth in Uganda.
Start Now – Create an Account on Level Africa
Join our community of like minded investors like yourself today Building Wealth With Level Africa.