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

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).

Timothy  Hughes
Key Contact

Timothy Hughes

Partner, Taxation

Taylor Cao

Taylor Cao

Associate, Taxation

Shelley  Obal

Shelley Obal

Partner, Research

Rosalind  Hunter

Rosalind Hunter

Partner, Corporate

Deron Fung

Deron Fung

Associate, Corporate

Alexandra Alacchi

Alexandra Alacchi

Associate, Corporate