Soon after the recent OCBC preference shares issuance, OCBC has decided to issue more preference shares to further balance its capital base.
This time round, they will be issuing 10,000,000 preferences share at a price of $100 each. If demand is good, this might be increased to 15,000,000 shares.
Out of these 10,000,000 OCBC preference shares, 2,500,000 will be offered to retail investors while the rest will be offered to institutions.
The retail application will be available via ATM application of Singapore’s three local banks starting from 9am today, until 12 noon on 26th August. The ATM subscription will be subjected to balloting if demand exceeds supply. Since the minimum subsciption this time round is 100 shares (compared to 200 shares previously), more people might be able to apply for it.
The preference shares will provided a dividend of 5.1% per annum which will be paid semi-annually in March and September till 20th September 2018. They are perpertual securities with no fixed maturity dates. They may however, be redeemed by OCBC on 20th September 2018 and each dividend date thereafter (subject to MAS’s approval).
After 20th September 2018, the dividend rate will no longer be fixed at 5.1% p.a. Instead, the rate will be tied to the 3-month Singapore dollar swap offer rate plus 2.5%. Dividends from that point onwards will be payable every 3 months.
The 3-month swap offer rate is a rate that is slightly higher than the 3-month SIBOR. You can find out the historical SIBOR rates from MAS’s financial database. Refer to “interbank 3-month”. For current rates, you can refer to a copy of The Business Times.
The OCBC preference shares are expected to list on SGX from 28th August 2008. More details on the OCBC preference shares offering can be downloaded here: