Royal Bank of Canada filed a free writing prospectus on October 29, 2026, disclosing the final term sheet for a $1,000,000,000 offering of 5.633% Senior Fixed Rate/Floating Rate Notes due November 5, 2032.

Key Highlights

  • Principal Amount: $1,000,000,000 in Senior Fixed Rate/Floating Rate Notes, issued at 100.000%.
  • Fixed Rate: 5.633% per annum during the fixed rate period from November 5, 2026 to November 5, 2031, paid semi-annually.
  • Floating Rate: USD Compounded SOFR Index Rate plus 108.4 basis points, reset and paid quarterly beginning February 5, 2032.
  • Re-offer Spread: Treasury benchmark plus 85 basis points, with a re-offer yield of 5.633%.
  • Expected Ratings: A1 / A / AA- / AA from Moody's, S&P, Fitch, and DBRS respectively, all with stable outlooks.
  • Settlement: Trade date October 29, 2026; settlement date November 5, 2026 (T+5).
  • Redemption Options: Optional make-whole redemption prior to November 5, 2031, and optional redemption in whole for tax reasons, each subject to conditions described in the filing.

Royal Bank of Canada's $1 Billion Fixed-to-Floating Note Offering: Key Terms

According to the final term sheet filed under Rule 433 (Registration No. 333-275898), Royal Bank of Canada is offering $1,000,000,000 aggregate principal amount of 5.633% Senior Fixed Rate/Floating Rate Notes due November 5, 2032. The notes are part of its Medium-Term Notes, Series J program. The issue price is 100.000%, with a trade date of October 29, 2026, and a settlement date of November 5, 2026, on a T+5 basis. The minimum denomination is $2,000 and multiples of $1,000 in excess thereof.

The filing discloses two distinct interest periods. During the fixed rate period, from November 5, 2026 through November 5, 2031, interest accrues at 5.633% per annum on a 30/360 day count basis and is payable semi-annually each May 5 and November 5, beginning May 5, 2027. During the floating rate period, from November 5, 2031 through the maturity date of November 5, 2032, the interest rate is the USD Compounded SOFR Index Rate plus 108.4 basis points, calculated on an Actual/360 basis and payable quarterly on February 5, May 5, and August 5, 2032, and at maturity. The treasury benchmark referenced is the 5.000% U.S. Treasury due September 30, 2031, priced at 100-30, implying a treasury yield of 4.783%, with the notes priced at a re-offer spread of T+85 basis points.

The filing describes two optional redemption provisions. An optional make-whole redemption allows the issuer to redeem the notes in whole or in part at any time prior to November 5, 2031, at the greater of a present-value-based make-whole price (using the Treasury Rate plus 15 basis points) or 100% of principal, plus accrued interest. Separately, an optional tax redemption allows the issuer to redeem the notes in whole, but not in part, if Canadian tax law changes on or after October 29, 2026, obligate the issuer to pay additional amounts, at 100% of principal plus accrued interest. In both cases, the filing states that notice must be given not less than 5 days nor more than 30 days before the redemption date. The notes will not be listed on any exchange, according to the filing.

What Was Disclosed

Royal Bank of Canada filed a final term sheet for a $1,000,000,000 senior note offering with a fixed rate of 5.633% through November 2031, then floating at SOFR plus 108.4 basis points through maturity in November 2032, settling November 5, 2026.