TORONTO, June 9 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today announced the issuance of $1.5 billion of subordinated debentures ("the Notes") through its Canadian Medium Term Note Program.
The Notes bear interest at a fixed rate of 4.35 per cent per annum (paid semi-annually) until June 15, 2015, and at the three-month Banker's Acceptance Rate plus 1.41 per cent thereafter until their maturity on June 15, 2020 (paid quarterly). The issue is expected to close on June 15, 2010.
The bank may, at its option, with the prior approval of the Office of the Superintendent of Financial Institutions Canada, redeem the Notes on or after June 15, 2015, in whole at any time, or in part from time to time, on not less than 30 days and not more than 60 days notice to the registered holders.
Proceeds of the issue will be added to the bank's general funds and will be utilized for general banking purposes.
RBC Capital Markets acted as lead agent on the issue.
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