Royal Bank of Canada announces Japanese Yen NVCC subordinated debenture issue

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TORONTO, July 10, 2025 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) today announced a private placement offering of JPY 26 billion of non-viability contingent capital (NVCC) subordinated debentures ("the Notes") through its European Programme for the Issuance of Securities.

The Notes bear interest at a fixed rate of 1.963 per cent per annum (paid semi-annually) until July 17, 2030 and at the 5 year Tokyo Overnight Average Rate (TONA) mid-swap rate plus 1.02 per cent thereafter until their maturity on July 17, 2035 (paid semi-annually). The expected closing date is July 17, 2025. RBC Capital Markets and Nomura International are acting as lead managers on the issue.

The bank may, at its option and with the prior approval of the Office of the Superintendent of Financial Institutions, redeem the Notes at any time on or after July 17, 2030, in whole but not in part, at par plus accrued and unpaid interest, on not less than 30 days' and not more than 60 days' notice to registered holders.

Net proceeds from this transaction will be used for general business purposes. The Notes are expected to qualify as Tier 2 capital of RBC for regulatory purposes.