Mr. Asim Imran reports

ROYAL BANK OF CANADA ANNOUNCES NVCC AT1 LIMITED RECOURSE CAPITAL NOTES ISSUE

Royal Bank of Canada today offered $1.0-billion (U.S.) of non-viability contingent capital (NVCC) Additional Tier 1 (AT1) limited recourse capital notes, Series 4 (the LRCNs). The securities offered are registered with the U.S. Securities and Exchange Commission (the SEC).

The LRCNs will bear interest at a rate of 7.500 per cent annually, payable quarterly, for the initial period ending May 2, 2029. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing United States Treasury rate plus 2.887 per cent. The LRCNs will mature on May 2, 2084. The expected closing date of the offering is April 24, 2024, subject to customary closing conditions.

RBC Capital Markets LLC, BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and UBS Securities LLC are the joint book-running managers for the offering.

Concurrently with the issuance of the LRCNs, the bank will issue NVCC non-cumulative five-year fixed rate reset first preferred shares, Series BV, to be held by Computershare Trust Company of Canada as trustee for Leo LRCN Limited Recourse Trust. In case of non-payment of interest on or principal of the LRCNs when due, the recourse of each LRCN holder will be limited to that holder's proportionate share of the limited recourse trust's assets, which will consist of preferred shares Series BV except in limited circumstances.

The bank may redeem the LRCNs on May 2, 2029, and on each Feb. 2, May 2, Aug. 2 and Nov. 2 thereafter, only upon the redemption by the bank of the preferred shares Series BV held in the limited recourse trust, in accordance with the terms of such shares and with the prior written approval of the Superintendent of Financial Institutions (Canada), in whole on not less than 10 nor more than 60 days of prior notice.

Net proceeds from this transaction will be used for general business purposes.