January 2021 Bank Of Uganda Treasury Bond Auction – 3-Year and 10-Year Bonds Reopened

To kick off 2021, the Bank of Uganda offered investors an early opportunity to earn steady, government-backed returns by reopening two treasury bonds — a 3-year and a 10-year option. These reopened bonds gave both new and experienced investors a chance to grow their money in a safe and predictable way.

What Bonds Were Offered?

The following bonds were auctioned on Thursday, January 21, 2021:

UG12J1801248 – 14.000% Government of Uganda Treasury Bond due 18-Jan-2024 (3-Year Reopening)
UG12K0304317 – 17.000% Government of Uganda Treasury Bond due 03-Apr-2031 (10-Year Reopening)

Bond Term	ISIN	Coupon Rate	Maturity Date	Offering Amount	Withholding Tax
3-Year	UG12J1801248	14.000%	18-Jan-2024	UGX 150 billion	20%
10-Year	UG12K0304317	17.000%	03-Apr-2031	UGX 300 billion	10%

These are reopening bonds, meaning they had been issued before and were being made available again for new investment.

Auction Details

Auction Date: Thursday, January 21, 2021
Settlement Date: Friday, January 22, 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 is paid every 6 months
Allotment: All successful bids are awarded at the same cut-off price — determined by the highest yield accepted in the auction

Why These Bonds Matter

The 3-year bond offers short-term fixed returns for people saving for expenses like tuition, home renovations, or capital for a small business.
The 10-year bond is ideal for long-term investors planning for milestones such as children’s education, land, or retirement.
Both bonds offer reliable passive income, paid twice a year, with the full investment returned at maturity.
Bonds are considered low-risk because they are fully backed by the Government of Uganda.

How to Invest with Level Africa

With Level Africa, you don’t need to fill out paper forms or go through a broker. Investing is fully digital and accessible to anyone with a smartphone.

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 January 2021 treasury bond auction gave Ugandans two strong ways to grow their money — whether planning for a few years or the next decade. And with Level Africa, investing in government bonds is now easier, faster, and open to everyone.

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:

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.