Seems like there's a lot more to say about the DBS 4.7% preference shares redemption.
I've been a little unfair to DBS on this previous post
here. From well informed friends (thanks cory and pero), I learnt that DBS actually exchange that preference shares with another one with higher payout and shorter tenor around Nov 2013. This is done because the older preference shares no longer qualify as Tier 1 capital under the new Basel III capital adequacy requirements implemented by MAS on Jan 2013.
I cut and paste the notice here, for future reference:
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DBS offers to trade new notes for $800m in preference shares
By Siow Li Sen lisen@sph.com.sg
Nov. 8 (Business Times) -- [SINGAPORE] DBS Group Holdings is offering to buy back $800 million of an outstanding $1.7 billion preference share issue, offering in exchange new notes with a higher payout and ...
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