An anonymous director reports

ROYAL BANK OF CANADA ANNOUNCES INSTITUTIONAL NVCC PREFERRED SHARE ISSUE

Royal Bank of Canada today arranged a domestic public offering of non-cumulative five-year fixed rate reset first preferred shares, Series BU.

Royal Bank of Canada will issue to certain institutional investors 750,000 preferred shares, Series BU, priced at $1,000 per share to raise gross proceeds of $750 million.

The preferred shares, Series BU, will yield 7.408 per cent annually, payable semi-annually, as and when declared by the board of directors of Royal Bank of Canada, for the initial period ending Feb. 24, 2029. Thereafter, the dividend rate will reset every five years at a rate equal to 3.90 per cent over the five-year government of Canada bond yield.

Subject to regulatory approval, the bank may redeem the preferred shares Series BU in whole or in part at par, during the period from Jan. 25, 2029, to and including Feb. 24, 2029, and during the period from Jan. 24 to and including Feb. 24 every five years thereafter, on not less than 15 days and not more than 60 days of notice.

RBC Capital Markets is acting as lead agent on the issue. The expected closing date is Jan. 25, 2024. The bank routinely undertakes funding transactions to maintain strong capital ratios and a cost-effective capital structure. Net proceeds from this transaction will be used for general business purposes.

The preferred shares, Series BU, will be offered by way of a prospectus supplement to the bank's short form base shelf prospectus dated March 25, 2022, to be filed on or about Jan. 22, 2024, with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada.