Treasury Bills & Bonds

ALTX Africa Group

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Accessible: For your convenience, ALTX gives you options of platforms on which to buy your bonds. Purchase your bonds directly from your mobile phone via our Mobi application or dialing *292# on your Airtel device and follow the prompts. Alternatively, buy your bonds from your desktop on the uTrade
Low risk: The risk of losing your money is lower than other investments such as stocks because it is guaranteed by the Bank of Uganda which has a good track record of paying its debts to bond investors.
Liquidity: ALTX gives makes bonds quickly available to you with the same-day settlement, ensuring you have your bonds by the end of the day that you paid for them. You can also sell your bonds and receive your money in as little as three working days.
Diversification: Investing in Uganda treasury bonds can help to balance your investments because they are lower risk and more liquid than some investments such as property.

Interest payments: You are entitled to interest payments twice a year which you may request to have paid out to you or reinvested into buying more bonds.
Selling: You may sell your bonds at any time you wish. If they are sold at a time when their market price is higher than what you bought them for, you can earn a profit.
Holding until maturity: You will receive the full sum of your original investment along with your final coupon payment.

dfcuBank

Treasury bills (T-Bills) are short term risk-free investments that are issued for a period of either 91, 182 and 364 days. The rate of return is usually more competitive than fixed deposits but dependent on the liquidity condition in the market.
Treasury bonds (T-Bonds) on the other hand are long term investments that are issued with maturities of 2, 3, 5 and 10 years. Pay-outs on Treasury bonds are made every 6 months.

Risk free investment
Affordable Investment option since the minimum amount required is UGX. 100,000
Option to sell in portions or as a whole in the secondary market
Option to buy any of the issued government securities from dfcu Bank as a primary dealer

Housing Finance Bank

Treasury bills are usually issued with maturities of 91 days (3 months), 182 days (6 months) and 364 days (1 year).
Treasury Bonds are long term financial instruments for investment of more than one year. Treasury Bonds are issued with maturities of 2 years, 3 years, 5 years, 10 years and 15 years.

Safety for your Savings: These are considered to have little or practically no risk attached to them (risk free investment).
Returns are predictable over time: Unlike other turbulent investments, Tbills/bonds are known to remain relatively stable with predictable and certainty in payment of your returns.
Good for long term savings like education, retirement: Because T-bonds are typically risk free investments, you might find them useful if you’re looking toward affording the best and complete education for your children or even a good life during retirement.
No value loss: Treasury bonds are considered extremely safe investments — because the government backs your principal investment and interest payment.
Diversifying Your Investment: Investing in Bonds and T-Bills can be the best way of not putting your eggs in a single basket

SBG Securities

Treasury Bills: These are issued through auctions run by Bank of Uganda in tenors of 91 days, 182 days and 364 days, minimum investment amount of Ugx 100,000 and multiples thereof; issued at a discount
Treasury Bonds: These are issued in tenors of 2, 3, 5, 10 and 15years, minimum investment amount of Ugx 100,000 and multiples thereof; have periodic payments called coupons paid every 6 months. Coupon rates are fixed for the duration of the bond investment.
Issuing a bond at par occurs when a coupon rate is equal to the prevailing interest rates for a particular tenor. In this case, the face value will be equal to the amount debited from the holder’s account.
Issuing a bond at a discount occurs when it offers a coupon rate lower than the prevailing interest rate for a particular tenor. Face value will be more than the amount debited from the holder’s account.
Issuing a bond at a premium occurs when the bond offers a coupon higher than the prevailing interest rates. Face value at maturity will be lower than the debit amounts off the holder’s account.