September 2021 Bank Of Uganda Treasury Bond Auction – 2-Year New and 10-Year Reopening Bonds

This September, Bank of Uganda is offering one brand-new treasury bond and reopening another — giving both new and experienced investors flexible options to grow their money safely. Whether you’re investing for a short timeline or the next decade, here’s what you need to know.

What Bonds Are Being Offered?

On Wednesday, September 8, 2021, the following bonds will be auctioned:

UG12F0709234 – 2-Year Government of Uganda Treasury Bond maturing 07-Sep-2023 (New Bond)
UG12K0403325 – 16.375% Government of Uganda Treasury Bond maturing 04-Mar-2032 (10-Year Reopening)

Bond Term	ISIN	Coupon Rate	Maturity Date	Offering Amount	Withholding Tax
2-Year	UG12F0709234	N/A (New)	07-Sep-2023	UGX 200 billion	20%
10-Year	UG12K0403325	16.375%	04-Mar-2032	UGX 300 billion	10%

Note: The 2-year bond is newly issued, so it does not yet have a defined coupon rate — the return will depend on auction results.

Auction Details

Auction Date: Wednesday, September 8, 2021
Settlement Date: Thursday, September 9, 2021 (by 12:00 PM)
Minimum Investment:
- UGX 100,000 for non-competitive bids
- UGX 200.1 million for competitive bids via Primary Dealer Banks
Coupon Payments: Paid every 6 months until maturity (for bonds with defined coupons)
Bidding Deadline: 10:00 AM on auction day
Allotment Method: All successful bids are allocated at the cut-off price linked to the highest accepted yield

Why These Bonds Matter

The 2-year bond is ideal for short-term savers looking for fixed, low-risk returns within a couple of years.
The 10-year bond offers a solid coupon rate of 16.375% — suitable for long-term investment planning.
Government bonds are backed by the state, making them among the most secure investments available.
With entry starting at UGX 100,000, they are accessible to nearly all Ugandans interested in growing their wealth.

How to Invest with Level Africa

You can now invest in treasury bonds fully online — no paperwork, no bank queues.

Steps 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 September 2021 bond auction is a great opportunity to invest with confidence — whether you’re testing out your first bond or planning long-term. With a new 2-year option and a reopened 10-year bond at 16.375%, investors have multiple paths to stable, government-backed growth.

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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.