It is widely noticed by consensus that bonds are considered a boring but rather less complex subject to write or even talk about. This, perhaps, is directly linked to lack of issuance of debt by corporate companies on Uganda’s capital market, even after the existing investor appetite. When a company has to raise capital, it can borrow money from a commercial bank, sell shares by listing on the Uganda Securities Exchange (USE) or privately to a private equity firm and issuing of debt through a corporate bond.
Just like Uganda’s government borrows from the public by issuing treasury bills and bonds, corporate companies can do the same,
through the issuance of bonds. Not a day goes by in Uganda, without someone raising concerns about the high interest rates and often the blame is placed on either government especially Bank of Uganda as well as the commercial banks. This is regardless of the fact that many a company; do have an opportunity to borrow cheaply through issuance of corporate bonds.
“If you have medium to long term projects, finance can’t be provided by short end deposits, which form the biggest source of financing for most of the commercial bank debt,
