By Cristal Cody
Tupelo, Miss., Jan. 13 – Royal Bank of Canada sold C$1.5 billion of 10-year non-viability contingent capital subordinated debentures on Wednesday at a spread of 276.9 basis points over the Government of Canada benchmark, according to the company and a market source.
The 3.31% bonds (A3/A//DBRS: A) were priced at 99.959 to yield 3.319% through Jan. 20, 2021. After the initial five-year period, the debentures will convert to the three-month Banker’s Acceptance rate plus 235 bps until the Jan. 20, 2026 maturity.
RBC Dominion Securities Inc. was the lead manager.
Royal Bank of Canada may redeem the notes on or after Jan. 20, 2021 at par.
Proceeds from the transaction will be used for general business purposes.
Royal Bank of Canada is a Toronto-based financial services company.
| Issuer: | Royal Bank of Canada
|
| Amount: | C$1.5 billion
|
| Maturity: | Jan. 20, 2026
|
| Securities: | Non-viability contingent capital subordinated debentures
|
| Bookrunner: | RBC Dominion Securities Inc.
|
| Coupon: | 3.31%; resets after Jan. 20, 2021 at three-month Banker’s Acceptance rate plus 235 bps
|
| Price: | 99.959
|
| Yield: | 3.319%
|
| Spread: | 276.9 bps over Government of Canada benchmark
|
| Call feature: | On or after Jan. 20, 2021 at par
|
| Pricing date: | Jan. 13
|
| Settlement date: | Jan. 20
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A
|
| DBRS: A
|
| Distribution: | Canada, Regulation S
|
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