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The base shelf prospectus is accessible, and
the shelf prospectus supplement will be accessible within two
business days, through SEDAR+.
TORONTO, July 17,
2024 /CNW/ - Royal Bank of Canada (TSX: RY) and (NYSE: RY) today
announced a domestic public offering of Non-Cumulative 5-Year Fixed
Rate Reset First Preferred Shares, Series BW ("Preferred Shares
Series BW").
Royal Bank of Canada will issue
to certain institutional investors 600 thousand Preferred Shares
Series BW priced at $1,000 per share
to raise gross proceeds of $600
million.
The Preferred Shares Series BW will yield 6.698 per cent
annually, payable semi-annually, as and when declared by the Board
of Directors of Royal Bank of Canada, for the initial period ending
November 24, 2029. Thereafter, the
dividend rate will reset every five years at a rate equal to 3.40
per cent over the 5-year Government of Canada bond yield.
Subject to regulatory approval, the bank may redeem the
Preferred Shares Series BW in whole or in part at par, during the
period from October 24, 2029 to and
including November 24, 2029 and
during the period from October 24 to
and including November 24 every five
years thereafter, on not less than 15 days and not more than 60
days' notice.
RBC Capital Markets is acting as lead agent on the issue. The
expected closing date is July 24,
2024. 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 banking purposes.
The Preferred Shares Series BW will be offered by way of a
prospectus supplement to the bank's short form base shelf
prospectus dated April 26, 2024, to
be filed on or about July 19, 2024
with the securities commissions and other similar regulatory
authorities in each of the provinces and territories of
Canada.
Access to the shelf prospectus supplement, the corresponding
base shelf prospectus and any amendment to the documents is
provided in accordance with securities legislation relating to
procedures for providing access to a shelf prospectus supplement, a
base shelf prospectus and any amendment to the documents. The base
shelf prospectus is accessible, and the shelf prospectus supplement
will be accessible within two business days, through SEDAR+ at
www.sedarplus.com.
An electronic or paper copy of the shelf prospectus supplement,
the corresponding base shelf prospectus and any amendment to the
documents may be obtained, without charge, from RBC Dominion
Securities Inc. by contacting 416-842-6311 or email at
torontosyndicate@rbccm.com, by providing the contact with an email
address or address, as applicable.
The Preferred Shares Series BW have not been and will not be
registered in the United States
under the United States Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state of
the United States and may not be
offered, sold or delivered, directly or indirectly in the United States or to, or for the account or
benefit of, a "U.S. person" (as defined in Regulation S under the
Securities Act). This press release does not constitute an offer to
sell or a solicitation to buy securities in the United States or in any other jurisdiction
where such offer or solicitation would be unlawful.
SOURCE Royal Bank of Canada