October 2023 Bank Of Uganda Bond Conversion Auction – What It Means for Investors
This was the second treasury bond auction held in October 2023. While the first auction on October 4 featured a reopening of the 3-year and 20-year bonds, the mid-month auction focused on giving current bondholders a chance to convert a maturing bond into new, longer-term options. Here’s what the bond conversion meant and how investors could benefit.
What Was the Conversion Offer?
The bond being converted was:
- UG12J1801248 – 14.000% Government of Uganda Treasury Bond due 18-Jan-2024
Holders of this bond had the option to exchange it for one of five benchmark bonds with longer terms:
| Term | ISIN | Coupon Rate | Maturity Date |
|---|---|---|---|
| 3-Year | UG12G0907265 | 13.500% | 09-Jul-2026 |
| 5-Year | UG12J1301280 | 14.125% | 13-Jan-2028 |
| 10-Year | UG12K0302337 | 14.375% | 03-Feb-2033 |
| 15-Year | UG12K1405378 | 16.000% | 14-May-2037 |
| 20-Year | UG12L1806433 | 15.000% | 18-Jun-2043 |
Investors could choose the bond that matched their timeline and investment goals.
How Did It Work?
- Early termination price of the original bond was set at UGX 107 per 100 face value.
- Investors submitted bids stating which new bond they wanted in exchange and at what price.
- The government aimed for cash flow neutrality, meaning the value of the new bond was calculated to be as close as possible to the value of the original one.
- All successful bids for each new bond were allotted at the same price — the lowest price accepted in that auction.
Why This Matters for You
- This gave investors a seamless reinvestment option without having to wait for cash and go through the auction process again.
- Instead of receiving your money back in January and having to find a new opportunity, you could immediately lock in another round of fixed interest income — some as high as 16.000%.
- The range of terms (3–20 years) allowed you to choose what worked for your plans — whether short, mid, or long-term.
How to Invest in Bonds with Level Africa
Whether you’re converting old bonds or starting fresh, Level Africa makes it easy to invest from your phone.
Here’s how to get started:
-
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
Bond conversion auctions like this give investors a smart way to extend their investment and stay earning — without disruption. And with trusted access through Level Africa, you don’t need to wait for another bond to mature to grow your wealth.
Start Now – Create an Account on Level Africa
Join our community of like minded investors like yourself today Building Wealth With Level Africa.