Royal Bank of Canada filed a free writing prospectus on October 29, 2026, disclosing the final term sheet for $1,000,000,000 in 5.423% Senior Fixed Rate/Floating Rate Notes due November 5, 2030, under its Medium-Term Notes, Series J program.

Key Highlights

  • Principal Amount: $1,000,000,000, issued at a price of 100.000%.
  • Fixed Rate: 5.423% per annum, payable semi-annually from November 5, 2026 through November 5, 2029.
  • Floating Rate: USD Compounded SOFR Index Rate plus 86.8 basis points, reset and payable quarterly from November 5, 2029 to the maturity date.
  • Re-offer Spread: T + 70 bps over the 4.875% UST due October 15, 2029, which carried a treasury yield of 4.723%.
  • Settlement: T+5, with a settlement date of November 5, 2026.
  • Expected Ratings: A1 / A / AA- / AA from Moody's, S&P, Fitch, and DBRS respectively, all with stable outlooks.
  • Listing: None, according to the filing.

Royal Bank of Canada's 4NC3 Senior Note Structure and Key Terms

According to the filing, Royal Bank of Canada priced $1,000,000,000 of 5.423% Senior Fixed Rate/Floating Rate Notes under Registration No. 333-275898, with a trade date of October 29, 2026. The notes carry a minimum denomination of $2,000 and multiples of $1,000 in excess thereof. The re-offer yield equals 5.423%, set at a spread of T + 70 basis points over the treasury benchmark, the 4.875% UST due October 15, 2029, which was priced at 100-13 1/4 and carried a treasury yield of 4.723%, as stated in the term sheet.

The filing describes two distinct interest periods. During the fixed rate period, from November 5, 2026 to November 5, 2029, interest accrues at 5.423% on a 30/360 day count basis and is paid semi-annually on each May 5 and November 5, beginning May 5, 2027. During the floating rate period, from November 5, 2029 to the maturity date of November 5, 2030, interest accrues at the USD Compounded SOFR Index Rate plus 86.8 basis points on an Actual/360 basis and is paid quarterly on February 5, 2030, May 5, 2030, August 5, 2030, and the maturity date.

The filing also discloses two optional redemption features. The issuer may redeem the notes for tax reasons, in whole but not in part, at 100% of principal plus accrued interest, subject to conditions tied to changes in Canadian tax law announced or effective on or after October 29, 2026. Separately, the issuer may redeem the notes, in whole or in part, at any time prior to November 5, 2029 at a make-whole price equal to the greater of a present-value calculation discounted at the Treasury Rate plus 15 basis points, or 100% of principal, plus accrued interest in either case. Redemption notices must be sent not less than 5 days nor more than 30 days before the redemption date, according to the filing.

What Was Disclosed

Royal Bank of Canada disclosed the final pricing terms for a $1,000,000,000 senior note offering combining a fixed rate of 5.423% through 2029 and a SOFR-based floating rate through maturity in 2030, including optional tax and make-whole redemption provisions.