(December 13 – 09:25 ET) – Royal Bank is planning to raise $500 million through a secondary offering.

RBC says that it has entered into an underwriting agreement with a syndicate of underwriters led by RBC Dominion Securities Inc. for the sale of 10.7 million new common shares at $46.80 a share for total gross proceeds of $500.8 million. The deal is expected to close December 19.

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

The bank has also granted the underwriters an option to purchase up to 1.6 million additional shares cover over-allotments. The deal will be sold in both Canada and the U.S.
-IE Staff