Royal Bank of Canada

Royal Bank of Canada in its Additional Tier 1 offering of Limited Recourse Capital Notes


Royal Bank of Canada


$1.25 billion


Tax Advisory Services

Date Closed

November 2020


Banking & Financial Services

Lead Office




On October 22, 2020 Royal Bank of Canada announced $1.25 billion of NVCC Additional Tier 1 (AT1) Limited Recourse Capital Notes, Series 2. The offering uses the now market standard form of AT1 capital instrument pioneered by Osler.

The LRCNs will bear interest at a rate of 4% annually, payable semi-annually, for the initial period ending February 24, 2026. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing 5-year Government of Canada Yield plus 3.617%. The LRCNs will mature on February 24, 2081. Net proceeds from this transaction will be used for general business purposes.

Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance.

Osler, Hoskin & Harcourt LLP advised Royal Bank of Canada with a team consisting of Timothy Hughes, Taylor Cao (Taxation), Shelley Obal (Research), Rosalind Hunter, Deron Fung and Alexandra Alacchi (Corporate).