Royal Bank of Canada issues subordinated debentures
TORONTO, March 5, 2008 — Royal Bank of Canada
(RY on TSX and NYSE) today announced the issuance of $1 billion
of subordinated debentures ("the Notes") through
its Canadian Medium Term Note Program.
The Notes bear interest at a fixed rate of 4.84 % per annum
(paid semi-annually) until March 11, 2013, and at the three-month
Banker's Acceptance Rate plus 2.00% thereafter until their
maturity on March 11, 2018 (paid quarterly). The issue is
expected to close on March 11, 2008.
The bank may, at its option, with the prior approval of the
Office of the Superintendent of Financial Institutions Canada,
redeem the Notes 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 the registered holders. If the Notes are redeemed
prior to March 11, 2013, the redemption price will be the
greater of the Canada Yield Price and par. The Notes are redeemable
on and after March 11, 2013 at par. The "Canada Yield
Price" is the price which would provide a yield from
the redemption date to March 11, 2013 equal to 0.425% plus
the yield which a non-callable Government of Canada bond would
carry from the redemption date to March 11, 2013.
Proceeds of the issue will be added to the bank's general
funds and will be utilized for general banking purposes.
RBC Capital Markets acted as lead agent on the issue.
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