Royal Bank of Canada announces Preferred Share issue



    TORONTO, April 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 AX.
    The bank will issue 8 million Preferred Shares Series AX priced at $25
per share and holders will be entitled to receive non-cumulative quarterly
fixed dividend for the initial period ending November 24, 2014 in the amount
of $1.525 per share, to yield 6.10 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 November 24, 2014, the bank
may redeem the Preferred Shares Series AX in whole or in part at par.
Thereafter, the dividend rate will reset every five years at a rate equal to
4.13 per cent over the 5-year Government of Canada bond yield. Holders of
Preferred Shares Series AX 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 AY (the "Preferred Shares Series AY") on November 24,
2014 and on November 24 every five years thereafter.
    Holders of the Preferred Shares Series AY 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 4.13 per cent. Holders of
Preferred Shares Series AY will, subject to certain conditions, have the right
to convert all or any part of their shares to Preferred Shares Series AX on
November 24, 2019 and on November 24 every five years thereafter.
    The offering will be underwritten by a syndicate led by RBC Capital
Markets. The expected closing date is April 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: 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/


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