Bank of Uganda Offers UGX 990 Billion in Reopened 3-, 10- and 20-Year Treasury Bonds

The Bank of Uganda (BoU) has reopened three Uganda Government Treasury Bonds with a combined offer size of UGX 990 billion, giving investors access to medium and long-term government securities with maturities of three, 10 and 20 years.

The reopening comprises the 15.550% Treasury Bond maturing on June 1, 2028, the 16.000% Treasury Bond maturing on May 14, 2037, and the 15.000% Treasury Bond maturing on June 18, 2043.

The central bank has allocated UGX 230 billion to the three-year bond, UGX 330 billion to the 10-year bond and UGX 430 billion to the 20-year bond.

The Treasury bond auction will take place on Wednesday, July 15, 2026, while successful bidders will settle their purchases on Thursday, July 16, 2026.

Electronic Bid Submission through CSD

The Bank of Uganda said all bids from Primary Dealer (PD) banks and other commercial banks must be submitted electronically through the Central Securities Depository (CSD) by 10:00 a.m. on Wednesday, July 15, 2026.

Commercial banks will continue to facilitate applications from investors, while only licensed Primary Dealer Banks are eligible to submit competitive bids directly into the auction.

The central bank also noted that it reserves the right to increase or reduce the amount offered and may accept or reject applications, either in whole or in part, depending on auction outcomes.

Bond Details and Coupon Rates

The reopened three-year Treasury Bond carries a 15.550% annual coupon and matures on June 1, 2028. Interest is paid semi-annually, with the remaining coupon payment dates falling on January 7, 2027; July 8, 2027; January 6, 2028; and July 6, 2028.

The 10-year Treasury Bond offers a 16.000% annual coupon and matures on May 14, 2037. Investors receive interest every six months throughout the bond’s remaining life.

The 20-year Treasury Bond pays a 15.000% annual coupon with semi-annual interest payments extending until its maturity on June 18, 2043, providing long-term income for investors seeking extended-duration government securities.

Withholding Tax Varies by Tenor

The applicable withholding tax differs across the three securities.

Investments in the three-year Treasury Bond attract a 20% withholding tax, while income earned from both the 10-year and 20-year Treasury Bonds is subject to a reduced 10% withholding tax, making the longer-dated securities comparatively more tax-efficient for eligible investors.

Competitive and Non-Competitive Bidding

The Bank of Uganda said the minimum competitive bid is UGX 200.1 million, while the minimum non-competitive bid is UGX 100,000. Competitive bids must quote prices per UGX 100 of face value to three decimal places, for example 99.125.

Non-competitive bids are accepted in full at the auction’s cut-off price or yield, subject to a maximum investment of UGX 200 million per bond tenor.

Successful competitive and non-competitive bids will be allotted at a single auction price, representing the lowest accepted price per UGX 100 of face value, which corresponds to the highest accepted yield to maturity (YTM).

Primary Dealer Banks Eligible for Competitive Bids

Only licensed Primary Dealer Banks are permitted to submit competitive bids in the Treasury bond auction.

The current Primary Dealer Banks are Absa Bank Uganda, Citi Bank Uganda, Centenary Bank, DFCU Bank, Equity Bank Uganda, Housing Finance Bank, Stanbic Bank Uganda and Standard Chartered Bank Uganda.