March 2023 Bank Of Uganda Treasury Bond Auctions – What Happened and How to Invest

In March 2023, Bank of Uganda gave investors two chances to put their money to work through government treasury bonds — a bond conversion for maturing investors and a scheduled reopening auction. Here’s a simple breakdown of what was offered, what it means, and how you can take advantage.

March 9, 2023 – Non-Calendar Bond Conversion

Investors holding the maturing bond UG0000001244 – 11.000% maturing 13-Apr-2023 were invited to convert their investment into any of five newer bonds. This allowed them to stay invested and continue earning interest instead of cashing out.

Conversion Options:

What Happened:
Investors submitted bids for their preferred bond, and all successful bids were awarded at the same price — the cut-off price (highest accepted yield). The government aimed for “cash flow neutrality,” meaning investors swapped into bonds of roughly equal value.

March 22, 2023 – Scheduled Auction (3-Year and 15-Year Bonds)

Bank of Uganda also held a regular reopening auction for two benchmark bonds:

• UG12G2905259 – 14.000% Government of Uganda Treasury Bond due 29-May-2025 (3-Year Reopening)

• UG12K1405378 – 16.000% Government of Uganda Treasury Bond due 14-May-2037 (15-Year Reopening)

Key Details:

• Auction Date: March 22, 2023

• Settlement Date: March 23, 2023

• Minimum Investment: UGX 100,000 (non-competitive), UGX 200.1 million (competitive)

• Interest Paid: Every 6 months

• Allotment: All successful bids priced at the same cut-off yield

Why It Matters

• The 3-year bond suits short-term plans like school fees, business capital, or savings trials.

• The 15-year bond offers higher yields for long-term goals like retirement or wealth building.

• Both bonds pay fixed interest every 6 months and are backed by the Government of Uganda.

• With a starting investment of UGX 100,000, bonds are now accessible to almost everyone.

How to Invest with Level Africa

You can invest in treasury bonds directly on your phone — no paperwork, no middlemen.

Here’s how:

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

March 2023 was a big month for bond investors — with both conversion and auction opportunities offering reliable ways to earn interest. Whether you’re reinvesting or starting from scratch, treasury bonds remain a smart, safe way to grow your money.

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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