UOB has a callable option on 15 Sep 2013 for this pref share, at par value of $100. Though it is still 1.5 yrs away, there would inherently be some downward pressure from current $106 towards $100. Recall that in 2008, during the global financial crisis, where credit is tight, banks of course had to offer higher interest of 5%, to encourage investors to part with their cash, to beef up their Tier 1 bank capital. Fast forward 4 yrs later in 2012-2013, with ample cash liquidity globally, it does not make much business sense for UOB to pay such high interest :)
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