REG - Royal Bank of Canada - Notice to Debentureholders

Royal Bank of CanadaAnnouncement

28/09/2023 08:15

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RNS Number : 9138N  Royal Bank of Canada  28 September 2023

 

 

RNS ANNOUNCEMENT

 

Royal Bank of Canada

September 28, 2023

 

Notice to Debentureholders

 

 

ROYAL BANK OF CANADA

U.S. $300,000,000 Floating Rate Debenture Notes Due 2085 (the "Notes")

ISIN: GB0007542557

 

NOTICE IS HEREBY GIVEN that for the interest period commencing on September
30, 2023, the Notes will bear interest at the rate of 5.87500% per annum. The
interest payable on December 29, 2023 against Coupon No. 151 will be
USD14.850694 per USD1,000 nominal.

On March 5, 2021, the U.K. Financial Conduct Authority (the "FCA") announced
that USD LIBOR settings for all tenors of USD LIBOR would either cease
publication or no longer be representative after June 30, 2023. On April 3,
2023, the FCA announced that 1-, 3- and 6-month USD LIBOR settings will
continue to be published after June 30, 2023 using an unrepresentative
'synthetic' methodology, with the intention that these settings will cease on
September 30, 2024. Until then, these settings are expected to be available
using the unrepresentative 'synthetic' methodology on the same screens as
prior to June 30, 2023. Royal Bank of Canada ("RBC") used 3-month USD LIBOR as
published on Bloomberg Screen Page US0003M  Index  at 11:00 a.m. (London
Time) on September 27, 2023, in the same manner as prior to June 30, 2023, to
calculate the coupon rate for the Notes for the interest period commencing
September 30, 2023 as 3-month USD LIMEAN plus 0.25% (rounded upwards if
necessary to the nearest whole multiple of 1/16%), and intends to continue to
do so for as long as 3-month USD LIBOR is published on that screen. When
3-month USD LIBOR ceases to be published on that screen or its use becomes
impractical, RBC intends to consult with an independent advisor with
appropriate expertise to determine a successor or replacement rate for 3-month
USD LIBOR and any applicable adjustment spread and changes necessary for its
proper operation. Subject to the foregoing, RBC expects that the successor
rate for such purpose will be a Secured Overnight Financing Rate (SOFR) based
rate subject to any applicable adjustment spread and that any such
determination will take into account market practice at that time.

About RBC

Royal Bank of Canada is a global financial institution with a purpose-driven,
principles-led approach to delivering leading performance. Our success comes
from the 97,000+ employees who leverage their imaginations and insights to
bring our vision, values and strategy to life so we can help our clients
thrive and communities prosper. As Canada's biggest bank and one of the
largest in the world, based on market capitalization, we have a diversified
business model with a focus on innovation and providing exceptional
experiences to our more than 17 million clients in Canada, the U.S. and 27
other countries. Learn more at rbc.com.

Caution regarding forward-looking statements

This notice contains forward-looking statements within the meaning of certain
securities laws, including the "safe harbour" provisions of the United States
Private Securities Litigation Reform Act of 1995 and any applicable Canadian
securities legislation. Forward-looking statements in this press release may
include, but are not limited to, statements with respect to the cessation of
the publication of USD LIBOR settings, the duration of the continued
publication of USD LIBOR settings using an unrepresentative 'synthetic'
methodology and availability of such settings on published screens, the
intention of RBC to consult with an independent advisor following the rate
ceasing to be available on the relevant screen or becoming impractical and the
nature of the rate that may, subject to any applicable spread adjustment,
replace 3-month USD LIBOR in RBC's calculation of the coupon rate for the
Notes. By their very nature, forward-looking statements require us to make
assumptions and are subject to inherent risks and uncertainties, which give
rise to the possibility that our expectations or conclusions will not prove to
be accurate, that our assumptions may not be correct, that our financial
performance or other objectives, vision and strategic goals will not be
achieved, and that our actual results may differ materially from such
expectations or conclusions. Readers should not place undue reliance on these
statements as a number of risk factors could cause our actual results to
differ materially from the expectations expressed in such forward-looking
statements. Readers should consider the uncertainties with respect to such
transition and resulting risks that such transition would not occur, including
those discussed under the risks sections of our annual report for the fiscal
year ended October 31, 2022 and the Risk management section of our Q3 2023
Report to Shareholders. Any forward-looking statements contained in this
document represent the views of RBC only as of the date hereof. Except as
required by law, RBC does not undertake to update any forward-looking
statement, whether written or oral, that may be made from time to time by us
or on our behalf.

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