Royal Bank of Canada Launches $1.5 Billion Subordinated Debenture Offering

Royal Bank of Canada (RY) has announced an offering of subordinated debentures through its Canadian Medium Term Note Program. The $1.5 billion issue carries a fixed annual interest rate of 4.67 percent until October 1, 2031, and daily compounded CORRA plus 1.16 percent thereafter.

The net proceeds from the offering will be used for general business purposes, according to CNW. RBC Capital Markets is acting as lead agent in the transaction. The debentures are due to mature on October 1, 2036.