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News Releases


Royal Bank of Canada announces preferred share issue

TORONTO, November 24, 2008 — Royal Bank of Canada (RY on TSX and NYSE) today announced a domestic public offering of $225 million of Non-Cumulative, 5 year rate reset Preferred Shares Series AN.

The bank will issue 9.0 million Preferred Shares Series AN priced at $25 per share and holders will be entitled to receive non-cumulative quarterly fixed dividend for the initial period ending February 24, 2014 in the amount of $1.5625 per share, to yield 6.25% per cent annually. The bank has granted the Underwriters an option, exercisable in whole or in part, to purchase up to an additional 4.0 million Preferred Shares at the same offering price.

Subject to regulatory approval, on or after February 24, 2014, the bank may redeem the Preferred Shares Series AN in whole or in part at par. Thereafter, the dividend rate will reset every five years at a rate equal to 3.50% over the 5-year Government of Canada bond yield. Holders of Preferred Shares Series AN will, subject to certain conditions, have the right to convert all or any part of their shares to non-cumulative floating rate preferred shares Series AO (the "Preferred Shares Series AO") on February 24, 2014 and on February 24 every five years thereafter.

Holders of the Preferred Shares Series AO will be entitled to receive a non-cumulative quarterly floating dividend at a rate equal to the 3-month Government of Canada Treasury Bill yield plus 3.50%. Holders of Preferred Shares Series AO will, subject to certain conditions, have the right to convert all or any part of their shares to Preferred Shares Series AN on February 24, 2019 and on February 24 every five years thereafter.

The offering will be underwritten by a syndicate led by RBC Capital Markets. The expected closing date is December 8, 2008.

Earlier this quarter we issued $300 million of Preferred Share Series AL, which together with this transaction will add $525 million to Tier 1 capital. We routinely undertake funding transactions to maintain strong capital ratios and a cost effective capital structure. Net proceeds from this transaction will be used for general business purposes.

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For further information, please contact:

Media Contact:
Stephanie Lu, Head, Media Relations, (416) 974-5506

Investor Contacts:
Josie Merenda, Investor Relations, (416) 974-2044

Or visit the site: http://www.rbc.com/investorrelations


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11/24/2008 17:58:41