Royal Bank Gets Approval for Share-Buyback Program

By Robb M. Stewart

Royal Bank of Canada has gotten the green light to buy back up to 2.1% of its shares over a one-year period and plans to redeem subordinated debentures and preferred shares.

The bank, Canada's largest by market value, said Monday the Toronto Stock Exchange and Office of the Superintendent of Financial Institutions approved a normal course issuer bid to buy for cancellation up to 30 million of its shares.

The planned buybacks, which Royal Bank in late May said it planned to seek the approval for, can take place from Wednesday through June 11, 2025.

As well, the Toronto-based bank said it plans to redeem all of its issued and outstanding non-viability contingent capital non-cumulative five-year rate reset first preferred shares, series BB, on Aug. 24 for cash at a price of 25 Canadian dollars (US$18.16) a share. Royal Bank, which has 20 million series BB shares outstanding representing C$500 million of capital, said the redemptions will be financed out of the general corporate funds.

Royal Bank said it also intends to redeem all outstanding non-viability contingent capital 2.74% subordinated debentures due July 25, 2029, for the full principal amount plus accrued interest. The redemption will occur on July 25, and the current principal amount of the subordinated debentures outstanding is C$1.5 billion.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

June 10, 2024 09:08 ET (13:08 GMT)

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