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News Releases


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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For further information, please contact:

Media contact:
Beja Rodeck, Media Relations, Toronto,
(416) 974-5506 or toll-free 1-888-880-2173,

Investor contact:
Amy Cairncross, Investor Relations, Toronto,
(416) 955-7809, amy.cairncross@rbc.com


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03/06/2008 08:01:21