Royal Bank of Canada announced the offering of $1.1 billion of non-viability contingent capital Additional Tier 1 Limited Recourse Capital Notes, Series 9. The notes will bear interest at 6.275 per cent annually, payable semi-annually, for the initial period ending November 24, 2031, after which the rate resets every five years at the prevailing 5-year Government of Canada Yield plus 2.70 per cent, and they mature on November 24, 2086. The expected closing date is September 29, 2026, with RBC Capital Markets acting as lead agent. Concurrently, the bank will issue NVCC Non-Cumulative 5-Year Fixed Rate Reset First Preferred Shares, Series CB, to be held by Computershare Trust Company of Canada as trustee for the Leo LRCN Limited Recourse Trust, so that in case of non-payment, each noteholder's recourse is limited to that holder's proportionate share of the trust's assets. The bank may redeem the notes from October 24 to and including November 24, commencing in 2031 and every five years thereafter, only upon redemption of the Preferred Shares Series CB held in the trust and with prior written approval of the Superintendent of Financial Institutions (Canada), on not less than 10 nor more than 60 days' prior notice, and net proceeds will be used for general business purposes.
Royal Bank of CanadaRBC is issuing $1.1B NVCC AT1 Limited Recourse Capital Notes, a financing event for the bank.
Yulon Finance CorpComputershare is named as trustee for the Leo LRCN Limited Recourse Trust holding the Preferred Shares Series CB, a structural/legal role in the offering.
