Uganda puts UGX1.4tn Treasury Bonds on Auction

September 22, 2026 in Business, Finance, Markets, Trade & Industry by Editor

BoU says economic activity is projected to remain modest as the shocks to commodity prices, production and distribution disruptions and global inflation continue to dim the prospects for domestic economic growth.

Bank of Uganda is set to auction four government Treasury bonds on Wednesday, offering investors maturities ranging from two to 25 years.

 

The Government of Uganda is seeking to raise up to UGX1.4 trillion through the auction of four Treasury bonds with maturities ranging from two to 25 years, as the government continues to use the domestic debt market to finance its budget requirements.

The Bank of Uganda (BoU) has scheduled the auction for Wednesday, September 23, 2026, offering two re-opened bonds, one new issue and another re-opening across the maturity spectrum.

The largest offer is the 15-year bond, with a face value of UGX450 billion. The bond, which matures on September 5, 2041, is a new issue and does not carry a pre-set coupon, with the return to be determined through the auction process.

The 5-year re-opening has an offer of UGX350 billion and matures on May 20, 2032. It carries a coupon of 15 percent.

Another UGX350 billion is being offered through the 25-year re-opening, maturing on July 7, 2050, with a 16 percent coupon.

The shortest-dated security in the auction is the 2-year re-opening, with UGX250 billion on offer. It matures on November 16, 2028 and carries a 15.25 percent coupon.

The auction gives investors exposure to government securities across different investment horizons, while allowing the Treasury to mobilise domestic financing through the established government securities market.

The bonds are being issued under the Public Finance Management Act 2015, with settlement scheduled for Thursday, September 24.

According to the BoU notice, withholding tax on interest is 20 percent for the 2-year bond and 10 percent for the 5-year, 15-year and 25-year bonds.

Primary dealers and other commercial banks are required to submit bids electronically through the Central Securities Depository (CSD) by 10 a.m. on September 23.

Individual investors seeking to participate in government securities can do so by opening a CSD account through a commercial bank and placing bids through the bank.

The auction comes as Uganda continues to rely on domestic borrowing alongside other sources of financing to meet public expenditure and investment requirements. The longer maturities also provide the government with an avenue to lock in financing over extended periods, while investors gain access to securities offering fixed income over the respective terms.