The Bank of Uganda (BOU) raised sh1.3 trillion Wednesday in a private treasury bond placement to preselected investors, results from the auction have shown.  

The government borrows from the public through treasury bonds issued by the Bank of Uganda. The Central Bank was targeting to raise sh1.5 trillion in the auction. 

“This is an indication that fiscal authorities are desperately looking for avenues to raise significant amounts and quickly to address revenue shortfalls against mounting expenditure pressures,” Stephen Kaboyo, managing director at Alpha Capital, said.

Tenors ranged from 3, 5, 10, 15, and 20 years. Yields cleared at averages of 14.250%, 14.900%, 15.800%, 16.300%, and 16.750% respectively.

The government has proposed a budget of sh52.72 trillion budget for the next fiscal year 2024/25, compared to sh52.74 the current fiscal year. Projected domestic revenues are projected to increase slightly to sh29.9 trillion from sh29.6 trillion.