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
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

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.

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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.