July 2023 Bank Of Uganda Treasury Bond Tender – What to Know About the 3-Year and 20-Year Bonds
If you’re looking for a safe, reliable way to grow your money, treasury bonds are one of the best places to start. In July 2023, the Bank of Uganda offered two new bonds — one short-term and one long-term — giving both first-time and seasoned investors a chance to earn consistent returns backed by the government. Here’s a simple breakdown of what was offered, how the auction worked, and how you can still benefit from these bonds today.
What Was Offered?
Bank of Uganda invited investors to bid on two new government treasury bonds:
- UG12G0907265 – 13.500% Government of Uganda Treasury Bond due 09-Jul-2026
- Tenor: 3-Year Bond
- Offering Amount: UGX 150 billion
- Withholding Tax: 20%
- UG12L1806433 – 15.000% Government of Uganda Treasury Bond due 18-Jun-2043
- Tenor: 20-Year Bond
- Offering Amount: UGX 300 billion
- Withholding Tax: 10%
These bonds were open to both competitive and non-competitive bids. Minimum investment started at just UGX 100,000 for non-competitive bids — making them accessible to everyday investors.
How the Auction Worked
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The auction took place on Wednesday, July 12, 2023.
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All bids were submitted via the Central Securities Depository (CSD).
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Non-competitive bids were accepted in full up to UGX 200 million — making this route ideal for new or retail investors.
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Successful investors received their bonds at the same cut-off price (the price equivalent to the highest accepted yield).
What Makes These Bonds Attractive?
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The 3-year bond is a great option for short-term investors who want to earn stable income.
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The 20-year bond offers higher returns and is perfect for long-term plans like retirement or building generational wealth.
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Coupon payments (interest) are made every 6 months, providing a predictable income stream.
How You Can Take Advantage
You don’t have to wait for another manual auction process. With Level Africa, you can now:
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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
Government bonds are some of the safest and most rewarding ways to grow your money in Uganda. This July 2023 auction opened the door for both short- and long-term investors — and now, with platforms like Level Africa, participating is easier than ever.
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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.