16 February 2015

OCBC Capital 3.93% NCPS to be Redeemed

There goes another NCPS. OCBC's 3.93% NCPS is being redeemed at par value. Trading will stop on 27 Feb 2015, and proceeds would be paid on 20 Mar 2015.

Non-Convertible Preference Shares


GMGH said...

Aye, a sad day for preference shares investors. The pool is getting very very small now!

la papillion said...

Hi Lizardo,

I'm surprised they will redeem this low interest rate pref shares. Either this is not counted as their capital for the liquidity requirements (for the new requirements) or they really have no need for the extra cash.

I think it's the former.

Lizardo said...

la papillion,

There could be an additional reason.

OCC 3.93%
- 20 Mar 2015 @ 3.93% (20 Mar, 20 Sep)
- Thereafter @ 3-mth SOR + 1.85% (20 Mar, 20 Jun, 20 Sep, 20 Dec)

After 20 Mar 2015, the rate changes to 3-mth SOR + 1.85%. Believe the SOR has been climbing. So the rate may not be as cheap after all.

Lizardo said...


Sad day instead. Instead of retail investor getting hold of more Bonds/Preference Shares, we end up with less and less options.

Seems kind of a contradiction given all the discussions about CPF and retirement investments.

la papillion said...

Hi Lizardo,

You're right, if they didn't convert, the cost will be much higher.

I really really hope that the scene for retail bonds will be better than this. All the hot talk at SGX comes down to nothing at the moment.

Lizardo said...

Really need to open up the Bond market to the wider retail market. Maybe the second part of the CPF review study will bring something more tangible.

I suppose MoolahSense offers the other end of the same spectrum.