(January 16 – 18:00 ET) – Royal Bank of Canada today announced the issuance of $500 million of subordinated debentures through its Canadian Medium Term Note Program established on Jan. 13, 2000.

The Notes bear interest at a fixed rate of 6.10% per annum (paid semi- annually) until January 22, 2008, and at the 90-day Banker’s Acceptance Rate plus 1% thereafter until their maturity on January 22, 2013. The issue was priced at $99.680 with the yield to January 22, 2008 of 6.157%.

The issue is expected to close on January 22, 2001.

The bank may, at its option, with the prior approval of the Office of the Superintendent of Financial Institutions Canada, redeem the Notes in whole at any time, or in part from time to time, on not less than 30 days’ and not more than 60 days’ notice to the registered holders.

The purpose of this issue is to enlarge the bank’s capital base. Proceeds of the issue will be added to the bank’s general funds and will be utilized for general banking purposes.

RBC Dominion Securities Inc. acted as lead agent on the issue.
-IE Staff