DBS had the option of redeeming the perps on Feb 27 or on any distribution date thereafter. If the securities are not deemed, the distribution rate would have been reset on Feb 27 and every five years thereafter to a rate equal to the prevailing five-year US dollar treasury rate at the time plus 1.915% per annum.
Following the redemption, the securities will be cancelled and delisted from the Singapore Exchange Securities Trading Limited (SGX-ST).
The securities will be redeemed at the optional redemption amount of US$1,000 per calculation amount with the distribution accrued.
On Feb 27, the redemption price for the securities will become due and payable. Any distribution will cease to accrue on or after the redemption date. DBS will then pay the moneys to the holders of the securities.
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Shares in DBS closed 87 cents lower or 1.93% down at $44.13 on Jan 10.
