The Bank of Uganda started selling government bonds worth 2.7 trillion shillings to major banks and pension funds. The central bank opened bidding from May 26 through May 28 for buyers who want these treasury securities. Payment happens between May 29 and May 30 after the auction closes completely. Eight different bonds last from three to twenty years for investors. The longest bond pays back money during June 2043, with 430 billion shillings available.
Interest rates range from 14.125 percent up to 15.8 percent across all bond options. The three-year bond costs buyers 20 percent tax compared to 10 percent for longer bonds. The government needs this money to pay for budget spending across different departments and programs. Financial experts expect strong demand because these rates beat most other investment choices. Banks and retirement funds usually buy these bonds to earn steady profits over many years.
Interest rates range from 14.125 percent up to 15.8 percent across all bond options. The three-year bond costs buyers 20 percent tax compared to 10 percent for longer bonds. The government needs this money to pay for budget spending across different departments and programs. Financial experts expect strong demand because these rates beat most other investment choices. Banks and retirement funds usually buy these bonds to earn steady profits over many years.
