Capital Markets

Royal Bank of Canada in its $750 million Institutional Preferred Shares Series BU offering.

Royal Bank of Canada
Key Contact
Rosalind Hunter

Partner, Corporate, Toronto

Team
Jeremy Wu

Associate, Corporate, Toronto

Timothy Hughes

Partner, Tax, Toronto

James Chang

Associate, Tax, Toronto

On January 25, 2024, Royal Bank of Canada completed its offering of 750,000 Non-Cumulative 5-Year Fixed Rate Reset Preferred Shares Series BU (NVCC) (Preferred Shares) to certain institutional investors for gross proceeds of $750 million.

The holders of Preferred Shares will be entitled to receive fixed rate non-cumulative preferential dividends at a rate of 7.408% per annum, payable semi-annually, for the initial period ending February 24, 2029. Thereafter, the dividend rate on the Preferred Shares will reset every five years at a rate equal to the prevailing 5-year Government of Canada Yield plus 3.90%. Net proceeds from this transaction will be used for general banking purposes.

Royal Bank of Canada is a Canadian multinational financial services company and the largest bank in Canada by market capitalization.

Osler, Hoskin & Harcourt LLP represented Royal Bank of Canada with a team consisting of Rosalind Hunter, Jeremy Wu, Philip Abraham (Corporate) and Timothy Hughes and James Chang (Tax).

Value
$750 million
Date Announced
Jan 25, 2024
Lead Office
Toronto
Key Contact
Rosalind Hunter

Partner, Corporate, Toronto

Team
Jeremy Wu

Associate, Corporate, Toronto

Timothy Hughes

Partner, Tax, Toronto

James Chang

Associate, Tax, Toronto