Royal Bank of Canada today announced a domestic public offering of $250 million of Non-Cumulative First
Preferred Shares Series AE.

The bank will issue 10 million shares priced at $25 per share and holders will be entitled to receive non-cumulative preferential quarterly dividends in the amount of 28.125¢ per share, to yield 4.5% annually.

Subject to regulatory approval, on or after Feb. 24, 2012, the bank may redeem the shares in whole or in part at a declining premium.

The offering will be underwritten by a syndicate led by RBC Capital Markets. The expected closing date is Jan. 19, 2007.

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