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Cybernet Data Systems Inc.

Royal Bank of Canada Offers Redeemable Fixed Rate Notes

Strategic Insights

— 2 min read

Royal Bank of Canada is issuing redeemable fixed rate notes with a 5.18% annual interest rate. The notes will accrue interest on April 28th and October 28th of each year, starting from October 28, 2023, and ending on the maturity date. The bank may call the notes in whole, but not in part, beginning on April 28, 2025, and on each interest payment date thereafter, with 10 business days' prior written notice. The notes are not listed on any securities exchange and will be delivered in book-entry only form through the facilities of The Depository Trust Company on or about April 28, 2023.

Key Takeaways:

  • The redeemsable fixed rate notes will have a 5.18% annual interest rate and will accrue interest on April 28th and October 28th of each year.
  • The bank may call the notes in whole, but not in part, beginning on April 28, 2025, and on each interest payment date thereafter, with 10 business days' prior written notice.
  • The notes are not listed on any securities exchange and will be delivered in book-entry only form.
  • Investing in the notes involves a number of risks, including the risk of an early redemption, which may result in investors having to re-invest the proceeds in a lower rate environment.
  • Holders and beneficial owners of the notes will have no further rights to the extent that the note is converted in a bail-in conversion.
  • The notes are bail-inable notes and subject to conversion in whole or in part into common shares of the bank or any of its affiliates.

Statistics:

  • The notes will accrue interest at a rate of 5.18% per annum.
  • The bank may call the notes in whole, but not in part, beginning on April 28, 2025.
  • The notes are not listed on any securities exchange.
  • The notes will be delivered in book-entry only form through the facilities of The Depository Trust Company.
  • The public offering price for the notes is equal to the principal amount, with certain dealers who purchase the notes for sale to certain fee-based advisory accounts and/or eligible institutional investors may forgo some or all of their selling concessions, fees or commissions.

Sources:

  • "Pricing Supplement dated _____ [omitted]"
  • "Prospectus dated September 14, 2021: https://www.sec.gov/Archives/edgar/data/1000275/000121465921009470/rbc911212424b3.htm"
  • "Prospectus Supplement dated September 14, 2021: https://www.sec.gov/Archives/edgar/data/1000275/000121465921009472/rbcsupp911210424b3.htm"
  • "Product Prospectus Supplement FIN-1 dated September 14, 2021: https://www.sec.gov/Archives/edgar/data/1000275/000114036121031256/brhc10028916_424b5.htm"

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