BoU to auction 15 year treasury bond
On May 15, 2024, the Bank of Uganda will be auctioning off a 15 year treasury bond - UG12K1405378.
This bond comes with a 16% coupon rate, offering an attractive investment opportunity with an expected yield of around 15.8% plus on the settlement date of May 16, 2024.
Alex Kakande a financial analyst says that Investing in bonds is a smarter and better way to grow your wealth with reduced risk and lower capital needed.
“You can start with as low as shs100,000 and as high as shs200 million for the non competitive bids that are fully guaranteed to be awarded for retail investors. “
For tax planning, the 15 year treasury bonds attract only 10% withholding tax.
It is also essential to open an account with any commercial bank you bank with and this will be your custodian bank.
One can still open up a CSD account with any other bank and fund the account for Bond Investments.
If you have the CSD Account, have you already signed your purchase instructions with your custodian commercial bank? Reach out to your bank at the earliest and get yourself a chance to invest through the primary market.
Investing in Treasury bonds can provide a secure and profitable means of growing your wealth. So, if you're ready to enhance your investment portfolio, don't miss out on this chance offered by the Bank of Uganda.
If you invest shs10 million in this primary auction, starting May 30 2024, you would entitled to receive a gross coupon payment of shs800,000 from Bank of Uganda till 2037 and then receive back the shs 10 million at Maturity of the Bond.
