The east African country is due to hold its general election on Thursday.
The bond switch auction was held on Jan. 6, the Bank of Uganda said on Twitter.
"Investors were given a chance to convert any bonds which are maturing on January 21, 2021 into other bond/s which will mature at a later point in time," the Bank of Uganda said. "It was optional and some primary dealer banks chose to participate."
It did not say the amount of bonds that were switched.
But results of the auction seen by Reuters showed a total of 486.7 billion Ugandan shillings ($131.72 million) worth of treasury bonds that were due to mature on Jan. 6 were switched and will now mature at various dates between 2023 and 2040.
The central bank said it will still pay investors who were holding bonds due to mature on Jan. 6 that chose not to participate in the switch auction.
The original bond had a yield of 11%. The new switched paper carries different yields ranging from 16% to 17.8%, depending on the new tenure an investor preferred.
The Bank of Uganda did not give a reason for the bond switch, but the government has been struggling to raise enough in taxes to meet its obligations as the economy reels from the effects of the COVID-19 pandemic.
($1 = 3,695.0000 Ugandan shillings)
(Reporting by Elias Biryabarema; editing by Omar Mohammed, Larry King)
By Elias Biryabarema
