Royal Bank of Canada today announced a domestic pubic offering of $300 million of non-cumulative first preferred shares series W.

The bank will issue 12 million preferred shares priced at $25 per share. The shares will pay a non-cumulative preferential quarterly dividend 30.63¢ per share, to yield 4.90% annually.

Subject to regulatory approval, on or after February 24, 2010 the bank may redeem the preferred shares in whole or in part at a declining premium.

The preferred shares will also be convertible to common shares at the bank’s option on and after February 24, 2010 at 95% of the weighted average trading price of the common shares.

The offering will be underwritten by a syndicate led by RBC Dominion Securities Inc. The expected closing date is January 31, 2005.

The net proceeds of this transaction will be used for general business purposes and will strengthen the bank’s capital ratios.