The Bank of Uganda (BoU) has opened bids for government Treasury Bonds worth Shs990 billion, aiming to tap into investor appetite while supporting the country’s economic stability and development agenda.
The auction, scheduled for Wednesday, June 11, 2025, will offer re-openings of 2-year, 5-year, and 15-year bonds, with settlement set for Thursday, June 12. The central bank is inviting both institutional and individual investors to participate through the Central Securities Depository.
Breakdown of the offering
2-Year Bond (Shs230 billion) – 13.500% coupon, maturing July 9, 2026, taxed at 20%.
5-Year Bond (Shs330 billion) – 14.250% coupon, maturing August 23, 2029, taxed at 10%.
15-Year Bond (Shs430 billion) – 15.800% coupon, maturing June 23, 2039, taxed at 10%.
The auction is part of regular government fundraising under the Public Finance Management Act, 2015.
Minimum bid amounts are set at Shs200.1 million for competitive bidders and Shs100,000 for non-competitive participants. Bids must be submitted by 10:00 AM on the auction day.
Analyst: 15-year bond offers immediate gains
Financial analyst Alex Kakande described the 15-year bond as a “strategic pick” for income-focused investors.
“The timing of this bond is especially favourable,” he noted. “Anyone who invests by June 11 will receive the next coupon on July 10, 2025—just a month later. That’s a 7% net return almost immediately, followed by another payout on January 8, 2026, totaling 14% within seven months.”
He added that such returns, especially in a stable macroeconomic environment, make the 15-year bond a compelling option for those managing liquidity and seeking predictable cash flows.
This auction adds to Uganda’s efforts to maintain macroeconomic stability while giving investors opportunities for medium and long-term portfolio growth.
