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Financings

Royal Bank of Canada announces NVCC AT1 Limited Recourse Capital Notes issue

By The Northwire Desk — AI Analysis Jan 27, 2026 · 17:30 RY · 229.19 ROYAL BANK OF CANADA
RY · Price

Executive Summary

  • Royal Bank of Canada announced a US$1.0 billion issuance of Non‑Viability Contingent Capital (NVCC) Additional Tier 1 Limited Recourse Capital Notes, Series 8.
  • The notes bear 6.50% annual interest (quarterly), reset after May 24 2023 to Treasury + 2.450%, and mature on May 24 2086; redemption options are provided starting May 24 2033.
  • Net proceeds will be used for general business purposes, enhancing the bank’s capital position.

Key Details

  • Offering Size: US$1.0 billion of NVCC AT1 Limited Recourse Capital Notes (LRCNs), Series 8.
  • Interest Rate: 6.50% per annum, payable quarterly until May 24 2033; thereafter reset every five years to the prevailing 5‑year U.S. Treasury rate + 2.450%.
  • Maturity: May 24 2086.
  • Redemption Dates: First optional redemption on May 24 2033; subsequent optional redemptions on February 24, May 24, August 24, and November 24 of each year thereafter, subject to redemption of Preferred Shares Series CA and prior approval from the Superintendent of Financial Institutions (Canada).
  • Related Preferred Shares: Concurrent issuance of NVCC Non‑Cumulative 5‑Year Fixed Rate Reset First Preferred Shares, Series CA, held by Computershare Trust for the Limited Recourse Trust; these shares back the LRCNs’ limited recourse feature.
  • Use of Proceeds: General business purposes.
  • Book‑Running Managers: RBC Capital Markets, LLC; Citigroup Global Markets Inc.; J.P. Morgan Securities LLC; Morgan Stanley & Co. LLC; UBS Securities LLC.
  • Closing Date: Expected January 30 2026, subject to customary conditions.
  • Regulatory Filings: Registration statement filed and effective with the U.S. SEC; offering made via prospectus supplement and base prospectus.

Notable Quotes

(No executive quotes were provided in the release.)

Read the original news release →

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