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:

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:

• UG12J1301280 – 14.125% Government of Uganda Treasury Bond due 13-Jan-2028 (5-Year Reopening)

• UG12L1408420 – 18.500% Government of Uganda Treasury Bond due 14-Aug-2042 (20-Year Reopening)

Auction Date: February 22, 2023
Settlement Date: February 23, 2023
Minimum Investment:

• UGX 100,000 (non-competitive)

• 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

• Conversions offer investors a way to stay invested without waiting for bond maturity payouts.

• Scheduled auctions give everyone, including first-time investors, a chance to earn government-backed returns.

• With rates like 18.5% for the 20-year bond, returns are among the highest for fixed-income options in Uganda.

• 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:

1. Create an account on Level Africa

2. Complete KYC with your ID or passport

3. Go to Treasury Bonds under Products

4. Choose bonds listed (including reopened 3Y or 20Y bonds)

5. Fund your Level wallet

6. Buy bonds — instantly, if marked “Available”

7. 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.

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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:

1. Create an account on Level Africa
2. Upload your National ID or Passport (KYC)
3. Go to “Treasury Bonds” under Products
4. Choose a bond that matches your investment goals
5. Deposit funds into your wallet
6. Place your order — instantly if marked “Available”
7. 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.

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