Bank of Uganda to Issue Longest-Ever 25-Year Bond in Sh1.4 Trillion Auction

The Bank of Uganda (BoU) is set to issue a landmark 25-year treasury bond this Wednesday, August 6, as part of a Shs1.4 trillion domestic bond auction—the longest tenor ever offered on the market.

The auction will feature four benchmark securities: a newly issued 5-year and 25-year bond, along with reopened 2-year and 15-year instruments. The move is seen as a strategic effort to deepen the domestic debt market and attract long-term investment.

Market analysts at Absa noted that offshore investors are closely monitoring the auction, with particular attention on the 25-year paper, given its extended maturity and potential for higher yields.

“The mood in the market has been cautious,” said a local trader. “The shilling opened and closed flat at 3575/3585 on Monday, with many players choosing to stay on the sidelines ahead of the bond issuance.”

The Uganda shilling is expected to remain range-bound in the short term, trading between 3570 and 3620, analysts said.

Meanwhile, money markets remain adequately supplied. Overnight funding rates averaged 9.66%, while the one-week rate hovered around 10.10%.

BoU’s latest issuance reflects an ongoing effort to diversify its debt portfolio and extend the maturity profile of domestic borrowing.

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