Today Straits Times report that 2 OCBC preference shares may be recalled by OCBC next month. I call the OCBC bank – Mr. Chin,  and told him why the information was not provided in the SGX website ? and if the news was not reported. how can the investors know about it ? He can not give me the good answer.

It all boils down to weighing your risks.

Top on my list on risk evaluation is who the issuer is. In this case its OCBC. They have, at this time, three other non convertible preference shares (NCPS) listed on SGX....4.2% NCPS, 4.5% NCPS, 3.93% NCPS. These NCPS were issued in 2003 and 2005. Since the issuance, there has not been any default on the divident. So, it seems quite safe to me.

As for liquidity (cos its up to OCBC to decide on the recall), it you need your money back, you can always sell it in the open market.

So, all things considered, if you want to park some of your funds that gives you a very high probability of 5.1% returns, this is not too bad an option.

I will invest only unless it's pay fixed and confirmed 5.1% pa . It's so simple the bank pocket 1b without promising !!

Application for pref shares opened this morning and closed within 15 min. After OCBC has assessed the response to the application, they may (or may not ) open it again.

You need to check with your broker/banker if he managed to submit your application for you.

Pref share value is $100 per share. Min application is $20K (or 200 shares) and in $10K (100 shares) lots thereafter. You will be able to trade these shares in the SGX.. Currently lot size still not certain.....but guess it will be 50 or 100 shares.

Interest will be 5.1%....and this is fixed perpetually. OCBC can call back the shares after 5 years.