On January 22, 2024, Royal Bank of Canada (RBC) issued C$750 million in Non-Cumulative 5-Year Fixed Rate Reset First Preferred Shares, Series BU. The shares carry an initial dividend rate of 7.408% per annum, payable semi-annually until February 24, 2029, after which the rate resets every five years at the Government of Canada Yield plus 3.90%. These NVCC-compliant shares convert into common shares upon a regulatory trigger event.

The offering, led by RBC Dominion Securities and a syndicate of banks, raised net proceeds of approximately C$741.77 million for general banking purposes. Osler, Hoskin & Harcourt LLP advised RBC, while McCarthy Tétrault LLP represented the agents. The preferred shares are not listed on any exchange, but the Toronto Stock Exchange has approved the listing of common shares issuable upon conversion.