Royal Bank of Canada announces preferred share issue


    TORONTO, March 24 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today
announced a domestic public offering of $200 million of Non-Cumulative, 5 year
rate reset Preferred Shares Series AV.
    The bank will issue 8 million Preferred Shares Series AV priced at $25
per share and holders will be entitled to receive non-cumulative quarterly
fixed dividend for the initial period ending August 24, 2014 in the amount of
$1.5625 per share, to yield 6.25 per cent annually. The bank has granted the
Underwriters an option, exercisable in whole or in part, to purchase up to an
additional 3.0 million Preferred Shares at the same offering price.
    Subject to regulatory approval, on or after August 24, 2014, the bank may
redeem the Preferred Shares Series AV in whole or in part at par. Thereafter,
the dividend rate will reset every five years at a rate equal to 4.42 per cent
over the 5-year Government of Canada bond yield. Holders of Preferred Shares
Series AV will, subject to certain conditions, have the right to convert all
or any part of their shares to non-cumulative floating rate preferred shares
Series AW (the "Preferred Shares Series AW") on August 24, 2014 and on August
24 every five years thereafter.
    Holders of the Preferred Shares Series AW will be entitled to receive a
non-cumulative quarterly floating dividend at a rate equal to the 3-month
Government of Canada Treasury Bill yield plus 4.42 per cent. Holders of
Preferred Shares Series AW will, subject to certain conditions, have the right
to convert all or any part of their shares to Preferred Shares Series AV on
August 24, 2019 and on August 24 every five years thereafter.
    The offering will be underwritten by a syndicate led by RBC Capital
Markets. The expected closing date is April 1, 2009.
    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 business purposes.




For further information: Investor Contact: James Colburn, Investor
Relations, (416) 955-7808; Media Contact: Stephanie Lu, Media Relations, (416)
974-5506 Or visit the site: http://www.rbc.com/investorrelations/