TORONTO, Oct. 26, 2020 /CNW/ - Royal Bank of
Canada (TSX: RY) (NYSE:
RY) today announced the applicable dividend rates for its
Non-Viability Contingent Capital (NVCC) Non-Cumulative 5-Year Rate
Reset First Preferred Shares, Series BF (RY.PR.M on TSX ) (the
"Series BF shares") and NVCC Non-Cumulative Floating Rate First
Preferred Shares, Series BG (the "Series BG shares").
With respect to any Series BF shares that remain outstanding
after November 24, 2020, holders will
be entitled to receive quarterly fixed rate non-cumulative
preferential cash dividends, as and when declared by the Board of
Directors of Royal Bank of Canada,
subject to the provisions of the Bank Act (Canada).
The dividend rate for the 5-year period from and including
November 24, 2020 to, but excluding,
November 24, 2025 will be
3.00% for the Series BF shares, being equal to the 5-Year
Government of Canada bond yield
determined as of October 26, 2020
plus 2.62%, as determined in accordance with the terms of the
Series BF shares.
With respect to any Series BG shares that may be issued on
November 24, 2020, holders will be
entitled to receive quarterly floating rate non-cumulative
preferential cash dividends, calculated on the basis of the actual
number of days elapsed in such quarterly period divided by 365, as
and when declared by the Board of Directors of Royal Bank of
Canada, subject to the provisions
of the Bank Act (Canada).
The dividend rate for the floating rate period from and
including November 24, 2020 to, but
excluding, February 24, 2021 will be
2.71% for the Series BG shares, being equal to the 3-month
Government of Canada Treasury Bill yield determined as of
October 26, 2020 plus 2.62%, as
determined in accordance with the terms of the Series BG
shares.
Beneficial owners of Series BF shares who wish to exercise their
conversion rights should instruct their broker or other nominee to
exercise such rights on or prior to the deadline for notice of
intention to convert, which is 5:00 p.m.
(EST) on November 9, 2020.
SOURCE Royal Bank of Canada