it is private offering of convertible preferred
securities
...Convertible Preferred Securities
Convertible preferred securities enjoy a fixed rate of coupon
payment until they are converted to shares.
Unlike common stocks or mandatory convertible securities, their
downside risk is more limited. GICs recent announced investment in
UBS involves mandatory convertible securities. It cannot be
directly compared with the Citigroup investment. Please refer to
the attachment for the terms of the securities in the Citigroup
investment.
1.today ST front page reports this time is perpetual converitble security at 7 % dividend
pa.
GIC can holds it as long as it like.
If GIC choose to convert into shares,GIC will pay premium of
20%
over the next few trading days.
2.Shall we consider sell off all assets of S$300 billion and have
few years of tax break?
In this way,Sing $$ will worth not more than the paper.
