Saturday, 20 April, 2024
13:42
13:32
Uganda treasury bonds are one of the ways in which the Government of Uganda raises money to boost its budget and pay for infrastructure projects.
Currently, the Ugandan Government issues bonds with maturities of between 2 years and 19 years. As an investor, you can expect to receive interest payments twice a year.
A bond is best understood as a loan agreement between you, the investor purchasing the bond, and an issuer, the government, or the company borrowing your money. Owning a treasury bond gives an investor the right to interest payments on specific dates.
The interest payments can provide an additional stable, reliable, and potentially generous source of income depending on the value of your investment.
Unlike many investments, you do not need very large sums of money to start buying bonds. The minimum investment on ALTX is 100 units which is approximately UGX 10,000. There is no maximum.
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.
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