Royal Bank of Canada issues subordinated debentures
TORONTO, June 2, 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 5.00% per annum
(paid semi-annually) until June 6, 2013, and at the three-month
Banker's Acceptance Rate plus 2.15% thereafter until their
maturity on June 6, 2018 (paid quarterly). The issue is expected
to close on June 6, 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 June 6, 2013, the redemption price will be the greater
of the Canada Yield Price and par. The Notes are redeemable
on and after June 6, 2013 at par. The "Canada Yield Price"
is the price which would provide a yield from the redemption
date to June 6, 2013 equal to 0.44% plus the yield which a
non-callable Government of Canada bond would carry from the
redemption date to June 6, 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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