May 2021 Bank Of Uganda Treasury Bond Auction – 3-Year and 15-Year Bonds Reopened

In May 2021, Bank of Uganda reopened two treasury bonds, offering both short-term and long-term investment options for Ugandans. Whether you’re planning for upcoming expenses or building wealth for the future, here’s what this auction had in store.

What Bonds Were Offered?

The following government bonds were auctioned on Wednesday, May 12, 2021:

UG12J1801248 – 14.000% Government of Uganda Treasury Bond due 18-Jan-2024 (3-Year Reopening)
UG12K2206346 – 14.250% Government of Uganda Treasury Bond due 22-Jun-2034 (15-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%
15-Year	UG12K2206346	14.250%	22-Jun-2034	UGX 300 billion	10%

These bonds were previously issued and made available again for investment through this reopening auction.

Auction Details

Auction Date: Wednesday, May 12, 2021
Settlement Date: Thursday, May 13, 2021 (by 12:00 PM)
Minimum Investment:
- UGX 100,000 for non-competitive bids
- UGX 200.1 million for competitive bids (submitted via Primary Dealer Banks)
Coupon Payments: Paid every 6 months until maturity
Bidding Deadline: 10:00 AM on auction day
Allotment Method: All successful bids were awarded at the same cut-off price (lowest accepted price matching the highest accepted yield)

Why These Bonds Matter

The 3-year bond is great for short-term planning — school fees, travel, small business expansion, or emergency savings.
The 15-year bond offers a longer-term strategy for investors focused on retirement, property investments, or generational wealth.
Government bonds provide predictable, fixed interest and are considered one of the safest investment vehicles available in Uganda.
With a UGX 100,000 minimum, these investments are accessible to a wide range of Ugandans.

How to Invest with Level Africa

No paperwork. No queues. Just simple, secure investing on your phone.

Here’s how to get started:

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 May 2021 treasury bond auction gave investors another reliable way to grow their money — whether for short-term goals or long-term legacy building. With strong interest rates and full government backing, these bonds remain a smart and secure investment choice.

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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.