RBC Sounds Out Investors on Potential Canadian Dollar AT1 Sale

Royal Bank of Canada is looking at selling Additional Tier 1 notes in Canadian dollars, to help refinance AT1 debt that it can soon buy back, according to people with knowledge of the matter.

The new notes would probably pay less than 3 percentage points, or 300 basis points, more than Canadian government benchmarks, according to the people, who asked not to be identified discussing private information. The bank has had early discussions with money managers and pricing information is preliminary, the people said, noting spreads may narrow further.

A spokesperson for RBC didn’t respond to a request for ...