Forex
RBC Issues $1.1 Billion in Contingent Capital Notes with Resetting Interest Rates
Royal Bank of Canada has announced a $1.1 billion issue of non-viability contingent capital (NVCC) Additional Tier 1 (AT1) Limited Recourse Capital Notes, Series 9.
The notes will bear interest at an annual rate of 6.275 per cent for the initial period ending November 24, 2031. After that, the interest rate will reset every five years at a rate equal to the prevailing 5-year Government of Canada Yield plus 2.70 per cent.
The notes will mature on November 24, 2086, and RBC Capital Markets is acting as lead agent on the issue.