BoU to raise UGX 990 billion in latest Treasury Bond auction

The Bank of Uganda (BoU) has announced the reopening of three government Treasury bonds worth a total of UGX 990 billion, with the auction scheduled for Wednesday, October 1, 2025.

According to the central bank, the offering will include UGX 230 billion in 2-year bonds at a coupon rate of 14.125% maturing on January 13, 2028; UGX 330 billion in 5-year bonds at 15.500% maturing on August 1, 2030; and UGX 430 billion in 15-year bonds at 15.800% maturing on June 23, 2039.

The bonds will attract withholding tax rates of 20% for the 2-year and 5-year tenors, and 10% for the 15-year tenor. Settlement is set for Thursday, October 2, 2025.

BoU said all competitive and non-competitive bids must be submitted through the Central Securities Depository (CSD) by 10:00 a.m. on auction day. The minimum competitive bid is UGX 200.1 million, while the minimum non-competitive bid is UGX 100,000. Non-competitive bids of up to UGX 200 million per tenor will be accepted in full at the cut-off price.

“All successful bids will be allocated at one price, corresponding to the lowest accepted price per 100,” the central bank stated, adding that it reserves the right to adjust the offering amount and accept or reject applications in part or in full.

The auction is open only to primary dealer banks, including Absa Bank, Centenary Bank, Citi Bank, DFCU Bank, Equity Bank, Housing Finance Bank, Stanbic Bank, and Standard Chartered Bank.

Treasury bonds remain a key instrument for government to raise funds for budgetary support while also deepening Uganda’s domestic debt market.