Royal Bank of Canada (RY) has issued an additional $2.5 billion U.S. of bonds, boosting its
record issuance this year.
Canada’s biggest bank by assets issued $1.35 billion U.S. of five-year bonds that are priced to
yield 160 basis points over government treasuries. In July, Royal Bank sold $1.25 billion U.S. of
similar duration bonds.
Separately, Bank of Montreal (BMO) issued $750 million of subordinated bonds denominated in
Canadian dollars. The 10-year bonds, which have a five-year duration, were priced to yield 270
basis points over government treasuries.
So far this year, Canadian banks have raised a record $244.7 billion ($178.9 billion U.S.) of
bonds in the domestic and international markets compared to $168 billion that was raised in
2021.
Royal Bank’s stock is down 11% this year at $121.73 per share.
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