Royal Bank of Canada announces NVCC subordinated debenture issue

TORONTO, March 25, 2024

TORONTO, March 25, 2024 /CNW/ - Royal Bank of Canada (TSX: RY) and (NYSE: RY) today announced an offering of $2 billion of non-viability contingent capital (NVCC) subordinated debentures ("the Notes") through its Canadian Medium Term Note Program.

The Notes bear interest at a fixed rate of 5.096 per cent per annum (paid semi-annually) until April 3, 2029 and at Daily Compounded CORRA plus 1.56 per cent thereafter until their maturity on April 3, 2034 (paid quarterly). The expected closing date is April 2, 2024. RBC Capital Markets is acting as lead agent on the issue.

The bank may, at its option and with the prior approval of the Office of the Superintendent of Financial Institutions, redeem the Notes on or after April 3, 2029 at par, in whole at any time or in part from time to time, on not less than 30 days and not more than 60 days' notice to registered holders.

Net proceeds from this transaction will be used for general business purposes.

The Notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. This press release does not constitute an offer to sell or a solicitation to buy securities in the United States or in any other jurisdiction where such offer or solicitation would be unlawful.

SOURCE Royal Bank of Canada