Royal Bank of Canada announces Preferred Share issue



    TORONTO, Jan. 21 /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 AR.
    The bank will issue 8.0 million Preferred Shares Series AR priced at $25
per share and holders will be entitled to receive non-cumulative quarterly
fixed dividend for the initial period ending February 24, 2014 in the amount
of $1.5625 per share, to yield 6.25% 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 February 24, 2014, the bank
may redeem the Preferred Shares Series AR in whole or in part at par.
Thereafter, the dividend rate will reset every five years at a rate equal to
4.50% over the 5-year Government of Canada bond yield. Holders of Preferred
Shares Series AR 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 AS (the "Preferred Shares Series AS") on February 24,
2014 and on February 24 every five years thereafter.
    Holders of the Preferred Shares Series AS 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 4.50%. Holders of Preferred
Shares Series AS will, subject to certain conditions, have the right to
convert all or any part of their shares to Preferred Shares Series AR on
February 24, 2019 and on February 24 every five years thereafter.
    The offering will be underwritten by a syndicate led by RBC Capital
Markets. The expected closing date is January 29, 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:

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


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