Royal Bank of Canada completes C$1.5B subordinated debenture offering

On July 25th, 2019 the Royal Bank of Canada completed its C$1.5-billion offering of non-viability contingent capital subordinated debentures (“the Notes”) through its Canadian Medium Term Note Program. The Notes bear interest at a fixed rate of 2.74 per cent per annum (paid semi-annually) until July 25, 2024, after which the Notes will bear interest at a floating rate (paid quarterly) until July 25, 2029 at 3-month CDOR plus 0.98%.

RBC Dominion Securities Inc. acted as the lead dealer for the offering, with a syndicate that included CIBC World Markets Inc., TD Securities Inc., Merrill Lynch Canada Inc., BMO Nesbitt Burns Inc., Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Wells Fargo Securities Canada, Ltd., HSBC Securities (Canada) Inc., Industrial Alliance Securities Inc., Laurentian Bank Securities Inc., and Manulife Securities Incorporated.

The dealers were represented by Stikeman Elliott LLP with a team that included Philip Henderson, Marshall Eidinger and Victor MacDiarmid (Securities), Peter Hamilton (Bank Regulatory) and Jonathan Willson (Tax).

Royal Bank of Canada was represented in-house by Erin Dion and Hoori Chitilian and by Norton Rose Fulbright Canada LLP with a team that included Heidi Reinhart, assisted by Sam Zadeh, Jenny Ng and Monica Wong (Securities) and Adrienne Oliver and Carl Deeprose (Tax).