Friends,
The soon to be auctioned 15 Year Treasury Bond (UG12K2306393) by the Bank of Uganda on the 11th of June 2025, presents an immediate return that shouldn't be overlooked.
It's crucial to understand that the timing of investment in Treasury bonds is often a critical factor, and the opportunity is this favorable for investors would want to get some of their investments back in the coming Months.
Take note of the key dates: the auction is set for June 11th, 2025 and 1 month later, on July 10th, the next coupon interest payment will be paid.
This means that within a month of your investment, you'll receive a net return of around 7% on your initial face value investment. For those who prioritize cash flow management in their investment strategy, this is an attractive opportunity.
Moving forward to January 8th, 2026 another 7% will be paid out, amounting to a total return of 14% net within a mere 7 months of your initial investment.
Investors who have committed funds by June 11th, 2025, will have realized a substantial 14% return on their investment—a truly remarkable and hard-to-beat performance.
In essence, for those of you gearing up to invest, or for those who make investment decisions based on interest rates, cash flow considerations, and timing, this Treasury bond could be the ideal choice for your portfolio.
Cashflow plan for someone investing UGX 100 Million.
Cashflow plan for a Ugx 10 Million Investment. Gross per 6 months is 790K and net is 711K.
Cashflow plan for a 30 Million Investment. Gross per 6 months is 2.3 Million and net is 2.1 Million.
Happy Investing Everyone
I appreciate you Alex
Is the coupon rate of 15.8 Fixed or it can get better at the time of trading?
What does YTM mean?