Royal Bank of Canada completes $1.25 billion subordinated debenture offering

The Royal Bank of Canada has completed a $1.25 billion offering of non-viability contingent capital subordinated debentures (the notes) through its Canadian Medium Term Notes Program.

The notes bear interest at a fixed rate of 2.088 per cent per annum, paid semi-annually, until June 30, 2025, after which point the notes will bear interest at a floating rate at 3-month CDOR plus 1.31 per cent, paid quarterly, until June 30, 2030, which is the maturity date of the notes.

The dealers, led by RBC Dominion Securities Inc., included TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Merrill Lynch Canada Inc., Wells Fargo Securities Canada, Ltd., HSBC Securities (Canada) Inc., Industrial Alliance Securities Inc., Laurentian Bank Securities Inc. and Manulife Securities Incorporated.

Stikeman Elliott LLP represented the dealers with a team including Philip Henderson, Victor MacDiarmid and Jennifer Che.

Norton Rose Fulbright Canada LLP represented the Royal Bank of Canada with a team that included Heidi Reinhart, assisted by Sam Zadeh and summer student Mike Wilkinson (securities), as well as Adrienne Oliver and Carl Deeprose (tax).

Erin Dion, Hoori Chitilian and Paul Burd acted as the in-house representation for the Royal Bank of Canada.