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Royal Bank of Canada files final prospectus for issuance of trust subordinated notes


Royal Bank of Canada (RY on TSX and NYSE) today announced that RBC Subordinated Notes Trust (“the Trust”), a closed-end trust wholly owned by the bank, filed a final prospectus with various securities commissions across Canada for the issuance of $1 billion of Trust Subordinated Notes (“the notes”).

The notes bear interest at a fixed rate of 4.58% per annum (paid semi-annually) until April 30, 2012, and at the three-month Banker’s Acceptance Rate plus 1.00% thereafter until their maturity on April 30, 2017 (paid quarterly). The issue was priced at $99.982 with a yield to April 30, 2012 of 4.584%. The notes are redeemable on and after April 30, 2012 at par.

The issue is expected to close on April 30, 2007. RBC Capital Markets acted as lead agent on the issue.

The capital will be used for general corporate purposes and will improve the efficiency of the bank’s capital structure.


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