Royal Bank of Canada announced an offering of $1.5 billion of subordinated debentures (the Notes) through its Canadian Medium Term Note Program. The Notes bear interest at a fixed rate of 3.31% per annum (paid semi-annually) until January 20, 2021, and at the three-month Banker's Acceptance Rate plus 2.35% thereafter until their maturity on January 20, 2026 (paid quarterly). The expected closing date is January 20, 2016.

RBC Capital Markets is acting as lead agent on the issue. The bank may, at its option, with the prior approval of the Office of the Superintendent of Financial Institutions Canada, redeem the Notes on or after January 20, 2021 at par, in whole at any time or in part from time to time, on not less than 30 days and not more than 60 days notice to registered holders. Net proceeds from this transaction will be used for general business purposes.