/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, June 23, 2020 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today announced an
offering of $1.25 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 2.088 per cent
per annum (paid semi-annually) until June
30, 2025 and at the three-month Canadian Dollar Offered Rate
plus 1.31 per cent thereafter until their maturity on
June 30, 2030 (paid quarterly). The
expected closing date is June 30,
2020. 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 June 30, 2025 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 in
the United States 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) absent registration under the Securities Act or an
applicable exemption from such registration requirements. 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