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Registration Statement No. 333-275898
Filed Pursuant to Rule 424(b)(2) |
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The information in this preliminary pricing supplement is not complete and may be changed. |
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Preliminary Pricing Supplement
Subject to Completion: Dated May 23, 2024
Pricing Supplement Dated May __, 2024 to the Prospectus dated December
20, 2023, the Prospectus Supplement dated December 20, 2023 and the Product Supplement No. 1A dated May 16, 2024
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$
Collared Floating Rate Notes,
Due May 30, 2029
Royal Bank of Canada
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Royal Bank of Canada is offering the Floating Rate Notes (the “Notes”)
described below.
| · | The Notes will accrue interest, payable quarterly, at a rate equal to the Reference Rate + a Spread of 0.95% (subject to a Coupon
Floor of 0.00% per annum and a Coupon Cap of 6.50% per annum). |
| · | The Reference Rate is compounded SOFR. |
| · | Any payments on the Notes are subject to our credit risk. |
| · | The Notes will not be listed on any securities exchange. |
| · | The Notes are bail-inable notes (as defined in the accompanying prospectus supplement) and are subject to conversion in whole or in
part—by means of a transaction or series of transactions and in one or more steps—into common shares of Royal Bank of Canada
or any of its affiliates under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act (the “CDIC Act”) and to
variation or extinguishment in consequence, and subject to the application of the laws of the Province of Ontario and the federal laws
of Canada applicable therein in respect of the operation of the CDIC Act with respect to the Notes. |
CUSIP: 78014RTC4
Investing in the Notes involves a number of risks. See “Selected
Risk Considerations” beginning on page P-4 of this pricing supplement and “Risk Factors” in the accompanying prospectus,
prospectus supplement and product supplement.
None of the Securities and Exchange Commission (the “SEC”),
any state securities commission or any other regulatory body has approved or disapproved of the Notes or passed upon the adequacy or accuracy
of this pricing supplement. Any representation to the contrary is a criminal offense. The Notes will not constitute deposits insured by
the Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance Corporation or any other Canadian or U.S. governmental agency
or instrumentality.
RBC Capital Markets, LLC will purchase the Notes from us on the Issue
Date at purchase prices that are expected to be between 99.00% and 100.00% of the principal amount, and will pay all or a portion of its
underwriting discount to certain selected broker-dealers as a selling concession. The public offering price for the Notes will be equal
to the principal amount. However, certain dealers who purchase the Notes for sale to certain fee-based advisory accounts and/or eligible
institutional investors may forgo some or all of their selling concessions, fees or commissions. The price to public for investors purchasing
the Notes in these accounts and/or for an eligible institutional investor may be as low as $990.00 (99.00%) per $1,000 in principal amount
of the Notes. See “Supplemental Plan of Distribution (Conflicts of Interest)” below.
RBC Capital Markets, LLC
| Collared Floating Rate Notes |
KEY TERMS
The information in this “Key Terms” section is qualified
by the more detailed information set forth in this pricing supplement and in the accompanying prospectus, prospectus supplement and product
supplement.
Issuer: |
Royal Bank of Canada |
Underwriter: |
RBC Capital Markets, LLC (“RBCCM”) |
Minimum Investment: |
$1,000 and minimum denominations of $1,000 in excess thereof |
Pricing Date: |
May 28, 2024 |
Issue Date: |
May 30, 2024 |
Maturity Date:* |
May 30, 2029 |
Interest Rate: |
For each Interest Period, (a) the Reference Rate for that Interest Period plus (b) the Spread, provided that the Interest Rate will not be less than the Coupon Floor or greater than the Coupon Cap |
Reference Rate: |
With respect to each Interest Period, compounded SOFR, determined as set forth under “General Terms of the Notes—Reference Rates—Daily SOFR and Compounded SOFR” in the accompanying product supplement, for that Interest Period |
Coupon Floor: |
0.00% per annum |
Coupon Cap: |
6.50% per annum |
Spread: |
0.95% |
Interest Payment Dates:* |
Quarterly, on the last day of each February and the 30th day of each May, August and November, commencing August 30, 2024 and ending on the Maturity Date. If an Interest Payment Date is not a business day, interest will be paid on the next business day, without adjustment to the end date of the relevant Interest Period, and no additional interest will be paid in respect of the postponement. |
Interest Period: |
Each period from and including an Interest Payment Date (or, for the first Interest Period, the Issue Date) to but excluding the next following Interest Payment Date |
Day Count Convention: |
30 / 360 |
Canadian Bail-in Powers
Acknowledgment: |
The Notes are bail-inable notes. See “Agreement with Respect to the Exercise of Canadian Bail-in Powers” below. |
Calculation Agent: |
RBCCM |
* Subject to postponement. See “General Terms of the Notes—Postponement
of a Payment Date” in the accompanying product supplement.
P-2 | RBC Capital Markets, LLC |
| Collared Floating Rate Notes |
ADDITIONAL TERMS OF YOUR NOTES
You should read this pricing supplement together with
the prospectus dated December 20, 2023, as supplemented by the prospectus supplement dated December 20, 2023, relating to our Senior Global
Medium-Term Notes, Series J, of which the Notes are a part, and the product supplement no. 1A dated May 16, 2024. This pricing supplement,
together with these documents, contains the terms of the Notes and supersedes all other prior or contemporaneous oral statements as well
as any other written materials, including preliminary or indicative pricing terms, correspondence, trade ideas, structures for implementation,
sample structures, fact sheets, brochures or other educational materials of ours.
We have not authorized anyone to provide any information
or to make any representations other than those contained or incorporated by reference in this pricing supplement and the documents listed
below. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give
you. These documents are an offer to sell only the Notes offered hereby, but only under circumstances and in jurisdictions where it is
lawful to do so. The information contained in each such document is current only as of its date.
If the information in this pricing supplement differs
from the information contained in the documents listed below, you should rely on the information in this pricing supplement.
You should carefully consider, among other things,
the matters set forth in “Selected Risk Considerations” in this pricing supplement and “Risk Factors” in the documents
listed below, as the Notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal,
tax, accounting and other advisers before you invest in the Notes.
You may access these documents on the SEC website
at www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC website):
| · | Prospectus dated December 20, 2023: |
https://www.sec.gov/Archives/edgar/data/1000275/000119312523299520/d645671d424b3.htm
| · | Prospectus Supplement dated December 20, 2023: |
https://www.sec.gov/Archives/edgar/data/1000275/000119312523299523/d638227d424b3.htm
| · | Product Supplement No. 1A dated May 16, 2024: |
https://www.sec.gov/Archives/edgar/data/1000275/000095010324006777/dp211286_424b2-ps1a.htm
Our Central Index Key, or CIK, on the SEC website
is 1000275. As used in this pricing supplement, “Royal Bank of Canada,” the “Bank,” “we,” “our”
and “us” mean only Royal Bank of Canada.
P-3 | RBC Capital Markets, LLC |
| Collared Floating Rate Notes |
SELECTED RISK CONSIDERATIONS
The Notes involve risks not associated with an investment in ordinary
floating rate notes. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes.
Some of the risks that apply to an investment in the Notes are summarized below, but we urge you to read also the “Risk Factors”
sections of the accompanying prospectus, prospectus supplement and product supplement. You should not purchase the Notes unless you understand
and can bear the risks of investing in the Notes.
Risks Relating to the Terms and Structure of the Notes
| · | The Interest Rate
on the Notes Is a Floating Rate and May Be Equal to the Coupon Floor — Interest payable on the Notes will be based on, in part,
on the Reference Rate for the relevant Interest Period. The Reference Rate could decline significantly, including to a rate equal to or
less than zero. If the Interest Rate for any Interest Period is equal to the Coupon Floor, no interest will be payable with respect to
that Interest Period. Accordingly, you may not receive any interest payments on the Notes. |
| · | The Interest Rate on
the Notes Will Be Limited to the Coupon Cap — Interest payable on the Notes will not exceed the Coupon Cap. Accordingly, interest
payable on the Notes may be less than interest payable on an investment directly linked to the Reference Rate without any cap. |
| · | Payments on the Notes Are Subject to Our Credit
Risk, and Market Perceptions about Our Creditworthiness May Adversely Affect the Market Value of the Notes — The Notes are our
senior unsecured debt securities, and your receipt of any amounts due on the Notes is dependent upon our ability to pay our obligations
as they come due. If we were to default on our payment obligations, you may not receive any amounts owed to you under the Notes and you
could lose your entire investment. In addition, any negative changes in market perceptions about our creditworthiness may adversely affect
the market value of the Notes. |
Risks Relating to Conflicts of Interest
| · | RBCCM’s Role as Calculation Agent May
Create Conflicts of Interest — As Calculation Agent, our affiliate, RBCCM, will determine any levels of the Reference Rate and
make any other determinations necessary to calculate any payments on the Notes. In making these determinations, the Calculation Agent
may be required to make discretionary judgments, including those described under “— Risks Relating to the Reference Rate”
below. In making these discretionary judgments, the economic interests of the Calculation Agent are potentially adverse to your interests
as an investor in the Notes, and any of these determinations may adversely affect any payments on the Notes. The Calculation Agent will
have no obligation to consider your interests as an investor in the Notes in making any determinations with respect to the Notes. |
Risks Relating to the Reference Rate
| · | The Secured Overnight Financing Rate Is a Relatively
New Reference Rate and its Composition and Characteristics Are Not the Same as LIBOR — The publication of SOFR began in April
2018, and, therefore, it has a limited history. In addition, the future performance of SOFR cannot be predicted based on the limited historical
performance. The level of SOFR during the term of the Notes may bear little or no relation to the historical actual or historical indicative
SOFR data. Prior observed patterns, if any, in the behavior of market variables and their relation to SOFR, such as correlations, may
change in the future. While some pre-publication historical data has been released by the Federal Reserve Bank of New York, production
of such historical indicative SOFR data inherently involves assumptions, estimates and approximations. No future performance of SOFR may
be inferred from any of the historical actual or historical indicative SOFR data. Hypothetical or historical performance data are not
indicative of, and have no bearing on, the potential performance of SOFR. |
The composition and
characteristics of SOFR are not the same as those of LIBOR, and SOFR is fundamentally different from LIBOR for two key reasons. First,
SOFR is a secured rate, while LIBOR is an unsecured rate. Second, SOFR is an overnight rate, while LIBOR is a forward-looking rate that
represents interbank funding over different maturities (e.g.,
P-4 | RBC Capital Markets, LLC |
| Collared Floating Rate Notes |
three months). As
a result, there can be no assurance that SOFR (including SOFR, compounded as described in this document) will perform in the same way
as LIBOR would have at any time, including, without limitation, as a result of changes in interest and yield rates in the market, market
volatility or global or regional economic, financial, political, regulatory, judicial or other events. For example, since publication
of SOFR began in April 2018, daily changes in SOFR have, on occasion, been more volatile than daily changes in comparable benchmark or
other market rates. For the same reasons, SOFR is not expected to be a comparable substitute, successor or replacement for LIBOR.
| · | The Reference Rate Will Be Affected by a Number
of Factors and May Be Volatile — Many factors may affect the Reference Rate including, but not limited to: |
| · | supply and demand for overnight U.S. Treasury repurchase agreements; |
| · | sentiment regarding underlying strength in the U.S. and global economies; |
| · | expectations regarding the level of price inflation; |
| · | sentiment regarding credit quality in the U.S. and global credit markets; |
| · | central bank policy regarding interest rates; |
| · | inflation and expectations concerning inflation; |
| · | performance of capital markets; and |
| · | any statements from public government officials regarding the cessation of the Reference Rate. |
These and other factors
may have a negative impact on the payments on the Notes and on the value of the Notes in the secondary market. Additionally, these factors
may cause the Reference Rate to be volatile, and volatility of the Reference Rate may adversely affect your return on the Notes.
| · | The Reference Rate with Respect to a Particular
Interest Period Will Be Capable of Being Determined Only Near the End of the Relevant Interest Period — The Reference Rate is
applicable to a particular Interest Period and, therefore, the amount of interest payable with respect to that Interest Period cannot
be determined until near the end of that Interest Period. As a result, you will not know the amount of interest payable with respect to
a particular Interest Period until shortly prior to the related Interest Payment Date, and it may be difficult for you to reliably estimate
the amount of interest that will be payable on that Interest Payment Date. |
| · | SOFR May Be Modified or Discontinued and the
Notes May Bear Interest by Reference to a Rate Other than SOFR, which Could Adversely Affect the Value of the Notes — SOFR is
published by the Federal Reserve Bank of New York based on data received by it from sources other than us, and we have no control over
its methods of calculation, publication schedule, rate revision practices or availability of SOFR at any time. There can be no guarantee,
particularly given its relatively recent introduction, that SOFR will not be discontinued or fundamentally altered in a manner that is
materially adverse to the interests of investors in the Notes. If the manner in which SOFR is calculated, including the manner in which
SOFR is calculated, is changed, that change may result in a reduction in the amount of interest payable on the Notes and the trading prices
of the Notes. In addition, the Federal Reserve Bank of New York may withdraw, modify or amend the published SOFR data in its sole discretion
and without notice. The interest rate for any Interest Period will not be adjusted for any modifications or amendments to SOFR data that
the Federal Reserve Bank of New York may publish after the interest rate for that Interest Period has been determined. |
| · | Uncertainty as to Some of the Potential Benchmark
Replacements and any Benchmark Replacement Conforming Changes We Make May Adversely Affect the Return on and the Market Value of the Notes
— If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
in respect of the Reference Rate, then the Interest Rate will no longer be determined by reference to compounded SOFR, but instead will
be determined by reference to a different rate, plus a spread adjustment, which we refer to as a “Benchmark Replacement,”
as further described below. |
P-5 | RBC Capital Markets, LLC |
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If a particular Benchmark
Replacement or Benchmark Replacement Adjustment cannot be determined, then the next-available Benchmark Replacement or Benchmark Replacement
Adjustment will apply. These replacement rates and adjustments may be selected, recommended or formulated by (i) the Relevant Governmental
Body (such as the Alternative Reference Rates Committee), (ii) the International Swaps and Derivatives Association (“ISDA”)
or (iii) in certain circumstances, the Calculation Agent. In addition, the terms of the Notes expressly authorize the Calculation Agent
to make Benchmark Replacement Conforming Changes with respect to, among other things, changes to the definition of “Interest Period,”
the methodology, timing and frequency of determining rates and making payments of interest and other administrative matters. The determination
of a Benchmark Replacement, the calculation of the interest rate on the Notes by reference to a Benchmark Replacement (including the application
of a Benchmark Replacement Adjustment), any implementation of Benchmark Replacement Conforming Changes and any other determinations, decisions
or elections that may be made under the terms of the Notes in connection with a Benchmark Transition Event, could adversely affect the
value of the Notes, the return on the Notes and the price at which you can sell such Notes.
In addition, (i) the
composition and characteristics of the Benchmark Replacement will not be the same as those of the Reference Rate, the Benchmark Replacement
may not be the economic equivalent of the Reference Rate, there can be no assurance that the Benchmark Replacement will perform in the
same way as the Reference Rate would have at any time and there is no guarantee that the Benchmark Replacement will be a comparable substitute
for the Reference Rate (each of which means that a Benchmark Transition Event could adversely affect the value of the Notes, the return
on the Notes and the price at which you may sell the Notes), (ii) any failure of the Benchmark Replacement to gain market acceptance could
adversely affect the Notes, (iii) the Benchmark Replacement may have a very limited history and the future performance of the Benchmark
Replacement may not be predicted based on historical performance, (iv) the secondary trading market for Notes linked to the Benchmark
Replacement may be limited and (v) the administrator of the Benchmark Replacement may make changes that could change the value of the
Benchmark Replacement or discontinue the Benchmark Replacement and has no obligation to consider your interests in doing so.
P-6 | RBC Capital Markets, LLC |
| Collared Floating Rate Notes |
AGREEMENT WITH RESPECT TO THE
EXERCISE OF CANADIAN BAIL-IN POWERS
By its acquisition of the Notes, each holder or beneficial owner is
deemed to (i) agree to be bound, in respect of that Note, by the CDIC Act, including the conversion of that Note, in whole or in part—by
means of a transaction or series of transactions and in one or more steps—into common shares of the Bank or any of its affiliates
under subsection 39.2(2.3) of the CDIC Act and the variation or extinguishment of that Note in consequence, and by the application of
the laws of the Province of Ontario and the federal laws of Canada applicable therein in respect of the operation of the CDIC Act with
respect to that Note; (ii) attorn and submit to the jurisdiction of the courts in the Province of Ontario with respect to the CDIC Act
and those laws; and (iii) acknowledge and agree that the terms referred to in paragraphs (i) and (ii), above, are binding on that holder
or beneficial owner despite any provisions in the indenture or that Note, any other law that governs that Note and any other agreement,
arrangement or understanding between that holder or beneficial owner and the Bank with respect to that Note.
Holders and beneficial owners of any Note will have no further rights
in respect of that Note to the extent that Note is converted in a bail-in conversion, other than those provided under the bail-in regime,
and by its acquisition of an interest in any Note, each holder or beneficial owner of that Note is deemed to irrevocably consent to the
converted portion of the principal amount of that Note and any accrued and unpaid interest thereon being deemed paid in full by the Bank
by the issuance of common shares of the Bank (or, if applicable, any of its affiliates) upon the occurrence of a bail-in conversion, which
bail-in conversion will occur without any further action on the part of that holder or beneficial owner or the trustee; provided that,
for the avoidance of doubt, this consent will not limit or otherwise affect any rights that holders or beneficial owners may have under
the bail-in regime.
See “Description of Notes We May Offer―Special Provisions
Related to Bail-inable Notes” in the accompanying prospectus supplement for a description of provisions applicable to the Notes
as a result of Canadian bail-in powers.
P-7 | RBC Capital Markets, LLC |
| Collared Floating Rate Notes |
UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
You should review carefully the section in the accompanying product
supplement entitled “United States Federal Income Tax Considerations,” focusing particularly on the section entitled “—Tax
Consequences to U.S. Holders—Notes Treated as Debt Instruments—Notes Treated as Variable Rate Debt Instruments.” The
following discussion, when read in combination with “United States Federal Income Tax Considerations” in the accompanying
product supplement, constitutes the full opinion of our counsel, Davis Polk & Wardwell LLP, regarding the material U.S. federal income
tax consequences of owning and disposing of the Notes. This discussion assumes that you purchased the Notes for cash in the original issuance
at the stated issue price and does not address other circumstances specific to you. In the opinion of our counsel, which is based on representations
provided by us, it is reasonable to treat the Notes for U.S. federal income tax purposes as Single Rate VRDIs (as defined in the accompanying
product supplement) that are issued without original issue discount. You should consult your tax adviser regarding the U.S. federal income
tax consequences of an investment in the Notes in your particular circumstances, as well as tax consequences arising under the laws of
any state, local or non-U.S. taxing jurisdiction.
SUPPLEMENTAL PLAN OF DISTRIBUTION
(CONFLICTS OF INTEREST)
After the initial offering of the Notes, the public offering price of
the Notes may change.
RBCCM or another of its affiliates or agents may use this pricing supplement
in the initial sale of the Notes. In addition, RBCCM or another of our affiliates may use this pricing supplement in a market-making transaction
in the Notes after their initial sale. Unless we or our agent informs the purchaser otherwise in the confirmation of sale, this
pricing supplement is being used in a market-making transaction.
For additional information about the settlement cycle of the Notes,
see “Plan of Distribution” in the accompanying prospectus. For additional information as to the relationship between us and
RBCCM, see the section “Plan of Distribution—Conflicts of Interest” in the accompanying prospectus.
P-8 | RBC Capital Markets, LLC |
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