Royal Bank to issue $200 million worth of preferred shares

Royal Bank of Canada plans to raise $200 million in a public offering of preferred shares, the bank said Tuesday.

Royal said it will issue eight million Series AP preferred shares at $25 per share, with proceeds to be used for “general business purposes.”

Holders will be entitled to a non-cumulative quarterly fixed dividend of $1.5625 per share for the initial period ending Feb. 24, 2014, yielding 6.25% annually.

The shares can be redeemed after the initial period at par by the bank, the dividend rate reseting every five years at a rate equal to 4.19% over the five-year Government of Canada bond yield.

The issue is expected to close Jan. 14.

Toronto-Dominion Bank and National Bank of Canada announced preferred share issues on Monday.

IE