Housing Finance Bank Uganda: PDMM Reappointment Extends Market Role

• Housing Finance Bank (HFB) was reappointed by the Bank of Uganda as a Primary Dealer Market Maker (PDMM) for the 2026-2029 cycle on October 5, 2026.
• This reappointment extends HFB's role in Uganda's government securities market to nine years and involves facilitating trading in Treasury bills and bonds.
• HFB has launched a new Treasury Securities Platform on its website, allowing investments in government securities from Shs100,000, enhancing market access for individuals and institutions.
• The bank's expanded mandate aims to deepen engagement with institutional investors and broaden access to capital for economic activities, including housing development.
• This move supports Uganda's national goals of deepening domestic capital markets, mobilizing financing for public investment, and promoting financial inclusion.

The reappointment of Housing Finance Bank Uganda PDMM is particularly significant as Uganda actively pursues strategies to deepen its domestic capital markets and secure financing for crucial public investments and broader economic expansion.

Housing Finance Bank (HFB) has been re-designated as a Primary Dealer Market Maker (PDMM) by the Bank of Uganda. This reappointment, effective for the 2026-2029 cycle, was officially announced on October 5, 2026, extending HFB's continuous involvement in Uganda's government securities market to a total of nine years.

As a PDMM, HFB is among a select group of financial institutions authorized to directly participate in government securities auctions. Their mandate includes facilitating the trading of both Treasury bills and Treasury bonds, playing a crucial role in the financial ecosystem.

The core responsibilities of a Primary Dealer Market Maker encompass active participation in the primary market for new issuances, alongside supporting the buying and selling of government securities in the secondary market. This critical function involves providing transparent market prices and streamlining transactions between various investors, ultimately enhancing market liquidity, price discovery, and overall efficiency within the financial system.

This new three-year term builds upon HFB's established six years of prior experience in this capacity, leveraging its robust treasury and financial markets operations, sophisticated risk management systems, and a dedicated team of specialists.

In a move to further democratize access to government investment opportunities, Housing Finance Bank has launched a dedicated Treasury Securities Platform on its official website. This innovative digital portal allows customers to directly invest in government Treasury bills and bonds, significantly broadening participation in the market.

Notably, the platform lowers the entry barrier for individual investors, permitting investments starting from as little as Shs100,000. Users of the platform gain access to both primary auctions for new issuances and secondary market transactions, supported by professional advisory services to guide their investment decisions.

Murielle Magayane, HFB's Head of Treasury, emphasized that this renewed mandate will significantly bolster the bank's capacity to connect a wider array of investors with government securities, thereby supporting their long-term financial objectives. The bank anticipates that its expanded role will deepen engagement with key institutional players, including pension funds, insurance companies, fund managers, various businesses, and international investors.

These strengthened relationships are expected to facilitate the mobilization of longer-term funding and broaden the availability of capital for diverse economic activities, prominently including housing development. This increased liquidity and accessibility in Uganda's government securities market could impact investment strategies for financial institutions, pension funds, and fund managers.

The reappointment of Housing Finance Bank Uganda PDMM is particularly significant as Uganda actively pursues strategies to deepen its domestic capital markets and secure financing for crucial public investments and broader economic expansion. Lawyers advising clients on Ugandan financial market investments should note HFB's expanded role and its new Treasury Securities Platform for potential client opportunities or compliance considerations.

As Uganda's specialized housing finance institution, HFB views its enhanced participation in the financial markets as a vital mechanism to reinforce the connection between capital mobilization and the nation's pressing housing needs. Furthermore, the bank identifies this mandate as a prime opportunity to advance financial inclusion by making government securities more accessible to a broader demographic of investors, including individual citizens who might otherwise face barriers to entry.

HFB's continued involvement in the government securities market is poised to directly support Uganda's overarching national development priorities, aligning with the Government's ambitious Tenfold Growth agenda. This strategic move underscores a commitment to fostering a robust and inclusive financial ecosystem capable of channeling investments towards sustainable growth and development across the country.

This reappointment signals increased liquidity and accessibility in Uganda's government securities market, which could impact investment strategies for financial institutions, pension funds, and fund managers. Lawyers advising clients on Ugandan financial market investments should note HFB's expanded role and its new Treasury Securities Platform for potential client opportunities or compliance considerations.

Source: Original reporting via Independent (Kampala)