BoU seeks Shs355 billion in latest Treasury bills auction

KAMPALA — The Bank of Uganda (BoU) has announced plans to raise Shs355 billion through the sale of Treasury bills in an auction scheduled for Thursday, June 4, as the government continues to finance its short-term borrowing requirements.

According to a public notice issued under the Public Finance Management Act, 2015, the central bank is offering three Treasury bill tenors comprising 91-day, 182-day and 364-day securities.

The largest portion of the offer, amounting to Shs255 billion, will be raised through the 364-day Treasury bill. Another Shs75 billion will be offered under the 182-day instrument, while Shs25 billion will be raised through the 91-day Treasury bill.

The auction will be conducted on Thursday, June 4, with successful bidders expected to settle their purchases a day later on June 5. The securities will mature on September 4, 2026, December 4, 2026, and June 4, 2027, respectively.

Treasury bills are short-term government debt instruments issued to finance budgetary needs while providing investors with a relatively low-risk investment option. They are widely used by banks, institutional investors and individuals seeking secure returns.

Bank of Uganda said all bids must be submitted electronically through the Central Securities Depository (CSD) system by 10am on the auction date.

Under the auction rules, only licensed Primary Dealer Banks are allowed to submit competitive bids. These bids require investors to specify the price at which they are willing to purchase the securities.

The minimum competitive bid amount has been set at Shs200.1 million, while non-competitive bids, which can be submitted through any commercial bank, start from as low as Shs100,000.

Bank of Uganda noted that non-competitive bids of up to Shs200 million per maturity will be accepted in full at the cut-off price determined during the auction.

The central bank further said all successful bidders will be allocated securities at a single price — the lowest accepted auction price, which corresponds to the highest accepted yield.

BoU also reserved the right to increase or reduce the amount offered and to accept or reject bids either partially or in full, depending on market conditions and government financing requirements.

The current list of Primary Dealer Banks includes Absa Bank Uganda, Citibank Uganda, Centenary Bank, DFCU Bank, Equity Bank, Housing Finance Bank, Stanbic Bank Uganda and Standard Chartered Bank Uganda.

The latest auction comes amid continued government efforts to mobilise domestic financing while providing investors with opportunities to invest in government-backed securities.