Banks dominate bond

Mar 26, 2004

Banks dominated the five-year bond auction taking up 60% of the sh20b on offer.

By Peter Kaujju

Banks dominated the five-year bond auction taking up 60% of the sh20b on offer.

This was said by Bank of Uganda’s director of domestic financial markets Wasswa Kajubi on Thursday.

The five-year Treasury Bond offered on Wednesday and listed on the Uganda Security Exchange (USE) was the third bond issued this year by BoU.

The bond was over-subscribed twice over at a yield to maturity of 12.802%.

“The strong participation in the auction of the 5-year bond reflects high confidence in investors regarding the outlook for the management of inflation over the life the bond,” said Kajubi.

USE’s chief executive officer Simon Rutega said listing of such bonds aimed at providing a benchmark for private sector development and establishing relationships between banks, USE and the public.

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