RBC Sydney branch A$1.25B 1Y FRN priced at 3MBSW +41bps

RBC Sydney branch A$1.25B 1Y FRN priced at 3MBSW +41bps

RBC Sydney Branch Issues A$500M Floating Rate Notes Tied to 3M BBSW

On February 23, 2026, Royal Bank of Canada (Sydney Branch) issued a A$500 million floating rate note (FRN) with a pricing structure linked to the 3-month Bank Bill Swap Rate (BBSW) plus a 41 basis point spread. The bond, categorized as a secured, variable-rate mortgage-backed instrument, is part of the bank's ongoing capital management strategy.

The FRN carries a variable coupon tied to the 3M BBSW benchmark, a common reference rate for Australian dollar-denominated debt. The 41 basis point margin reflects the issuer's credit profile and market conditions at the time of pricing. While the source materials do not specify the exact issuance date or maturity terms, the bond's structure aligns with typical FRN features, including periodic coupon resets and exposure to short-term interest rate fluctuations.

The A$500 million offering remains outstanding, with no early redemption options currently active. The bond's face value is set at A$100,000 per unit, and its USD equivalent stands at approximately $352.8 million based on current exchange rates. As a secured issuance, the bond is backed by collateral, reducing credit risk for investors relative to unsecured debt.

Royal Bank of Canada (Sydney Branch) operates as a subsidiary of Canada's RBC, a global financial services leader. The issuance underscores the bank's strategy to diversify funding sources across international markets. Investors should note that FRNs like this one are sensitive to shifts in benchmark rates, which could impact future coupon payments.

For further details, including prospectuses or historical pricing, access to premium bond data platforms such as Cbonds is required.

(https://cbonds.com/bonds/1309933/): Data sourced from Cbonds bond database (AU3FN0070025).