October 2025 Uganda Treasury Bond Auction Results – Strong Investor Demand Across All Terms
Bank of Uganda has released the results for its latest Treasury Bond auction held on October 29, 2025, with settlement on October 30, 2025.
This auction reopened three government bonds: 3-Year, 10-Year, and 20-Year maturities, giving investors another opportunity to lock in high, predictable returns.
Investor interest remained strong, with total bids reaching UGX 1.4 trillion against UGX 990 billion offered.
Bonds Offered and Results at a Glance
| Bond Term | Maturity Date | Cut-off Yield (%) | Cut-off Price (UGX per 100) | Amount Offered (UGX) | Amount Accepted (UGX) |
|---|---|---|---|---|---|
| 3-Year (UG12G0607287) | 06-Jul-2028 | 16.00% | 103.759 | 230,000,000,000 | 129,176,900,000 |
| 10-Year (UG12K0811352) | 08-Nov-2035 | 17.15% | 102.908 | 330,000,000,000 | 469,888,300,000 |
| 20-Year (UG12L1806433) | 18-Jun-2043 | 17.95% | 88.889 | 430,000,000,000 | 523,708,100,000 |
What These Results Mean
1. The Bonds Offered
The Bank reopened three existing bonds:
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3-Year bond (UG12G0607287) paying a 15.550% coupon, maturing July 2028
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10-Year bond (UG12K0811352) paying a 16.250% coupon, maturing November 2035
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20-Year bond (UG12L1806433) paying a 15.000% coupon, maturing June 2043
Reopening allows both new and existing investors to buy into bonds already in circulation, improving liquidity in Uganda’s bond market.
2. Cut-off Yield Explained
The cut-off yield is the final accepted rate in the auction. It determines how much return investors will earn.
Think of it as the winning interest rate after all bids have been reviewed.
For instance, a bond closing at 16 percent means investors who bid at or below that rate will earn that return until the bond matures.
3. Amount Raised
Although UGX 990 billion was offered, the Bank accepted UGX 1.12 trillion, reflecting strong investor confidence and a competitive bidding environment.
4. Investor Demand (Bid-to-Cover Ratio)
The Bid-to-Cover Ratio measures how many times total bids exceeded the amount offered:
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3-Year: 1.907
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10-Year: 1.211
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20-Year: 1.192
Ratios above 1.0 show oversubscription, which means government bonds continue to attract strong demand from both institutional and individual investors.
What an Investor Could Earn
When you invest in a Treasury Bond, you earn interest every six months until the bond matures, and your full principal is returned at the end of the term.
It is a predictable way to grow your money while preserving capital.
However, investors should note that interest earned on government securities is subject to Withholding Tax (WHT).
Withholding tax on Bank of Uganda bonds depends on the bond’s maturity.
Shorter-term bonds (under 10 years) typically attract a 20 percent withholding tax on interest payments, while longer-term bonds (10 years and above) are subject to a 10 percent withholding tax.
This tax is automatically deducted before you receive your interest, so there is no extra filing required on your part.
Even after tax, Treasury Bonds remain one of the most stable and rewarding investment options available, offering consistent income backed by the Government of Uganda.
How to Invest in Treasury Bonds Through Primary Dealers (PDs)
For investors who prefer the traditional route, Treasury Bonds are available through Primary Dealer (PD) banks licensed by the Bank of Uganda.
Step-by-Step Guide
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Choose a Primary Dealer Bank
Select one of the licensed banks: Absa, Centenary, Citi, DFCU, Equity, Housing Finance, Stanbic, or Standard Chartered. -
Open an Investment Account
If you do not already bank with them, you may need to open one. The PD will also help you create a Central Securities Depository (CSD) account at Bank of Uganda. -
Place Your Bid Through the Bank
Tell your bank how much you want to invest and in which bond maturity (2-year, 5-year, 10-year, etc.). The bank will submit your bid on your behalf. -
Meet the Minimum Requirement
The smallest investment allowed is UGX 100,000, though some PDs may have higher internal minimums. -
Settlement
If your bid is successful, your bank will debit your account on settlement day, which in this case is October 30, 2025, for the committed amount. -
Earning Returns
You will receive interest every six months directly to your bank account and get your full principal back at maturity.
How to Invest in Treasury Bonds Through Level Africa
It is now easier than ever to invest in bonds in Uganda.
With Level Africa, everything is done online, securely, and in minutes.
Steps to Get Started
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Create an Account on Level Africa
Visit Level Africa to register. -
Upload Your National ID or Passport
Complete your KYC (Know Your Customer) verification. -
Deposit Money into Your Level Africa Wallet
Fund your account using mobile money or bank transfer. -
Choose a Bond from the Treasury Bonds Section
Browse available bonds and maturities. -
Place Your Order
Bonds marked “Available” can be bought instantly.
For upcoming auctions, place your order at least three days before the auction date to give your investment enough time to be processed. -
Track Your Returns
Monitor your investments and interest payments directly from your Level Africa dashboard.
Note: A one-time UGX 25,000 fee applies to process your bid.
If you missed this auction, you can still prepare for the next one by completing your KYC and funding your wallet early.
Start Now – Create an Account on Level Africa!
Final Thoughts
The October 2025 auction reaffirms the resilience of Uganda’s bond market and the growing confidence of investors in fixed-income assets.
With yields between 16 and 18 percent, Treasury Bonds remain one of the most reliable ways to build long-term wealth.
Whether you prefer investing through your Primary Dealer bank or directly via Level Africa, the goal is the same: to grow your money safely and consistently while earning competitive returns.
Ready to Invest?
Join our community of like-minded investors building wealth with Level Africa.
Stay updated by following our WhatsApp channel and joining our Investor WhatsApp Community.
We’ll walk with you every step of the way.
FAQs – Treasury Bonds in Uganda
What are treasury bonds?
They are long-term loans you give to the government in exchange for fixed interest.
How often is interest paid?
Every 6 months directly to your Level Africa wallet.
What’s the minimum investment?
UGX 100,000 for non-competitive bids on Level Africa.
Is the interest taxed?
Yes. Withholding tax is 10% or 20%, depending on the bond.
Can I sell my bond before maturity?
Yes, on the secondary market — but prices may vary.
How do I know which bond to pick?
Start with your goal: short-term = 2-year, medium-term = 5-year, long-term = 15-year+