The Bank of Uganda has scheduled a Treasury bond auction worth Shs990 billion on April 15, 2026, as government steps up efforts to mobilise domestic financing and draw in long-term investors.
The sale will be conducted in line with the Public Finance Management Act and will reopen three existing bond tenures, providing a blend of medium and long-term investment opportunities.
Details from the central bank show that Shs230 billion will be offered under a three-year bond carrying a 15.55 percent coupon and maturing on July 6, 2028. A 10-year paper valued at Shs330 billion will attract a 16.25 percent coupon and mature on November 8, 2035, while a 20-year bond worth Shs430 billion will carry a 15.00 percent coupon with maturity set for June 18, 2043.
The issuance highlights the government’s continued dependence on domestic borrowing to fund its budget, while at the same time expanding the country’s capital markets.
Long-term investors are expected to find the longer tenures more appealing due to favourable tax treatment. The three-year bond is subject to a 20 percent withholding tax, whereas the 10-year and 20-year instruments attract a reduced rate of 10 percent, a factor likely to draw interest from pension funds and other institutional investors seeking steady returns.
Participation in the auction will follow strict guidelines set by the central bank. Competitive bidding has been rest,ricted to eight licensed Primary Dealer Banks, namely Absa, Citi, Centenary, DFCU, Equity, Housing Finance, Stanbic and Standard Chartered, with a minimum bid of Shs200.1 million. Other commercial banks and individual investors can take part through the Central Securities Depository under non-competitive bidding, with a minimum investment of Shs100,000 and a cap of Shs200 million per tenure.
Successful bidders will receive allocations at a uniform price based on the lowest accepted price per 100, which corresponds to the highest accepted yield.
The auction is set for April 15, 2026, with settlement expected a day later. Bids must be submitted by 10:00am on the auction day, although the central bank reserves the right to revise the amount on offer or reject applications depending on prevailing market conditions.
There is an anticipation of strong uptake, particularly for the longer-dated bonds, attractive yields and limited alternative long-term investment options.
The move comes at a time when government borrowing remains elevated, with Treasury bonds continuing to play a key role in financing the fiscal deficit while offering relatively secure investment avenues.
