CESSATION OF THE 6-MONTH AND 12-MONTH CDOR/BA TENORS

CDOR (Canadian Dollar Offered Rate) is the recognized financial benchmark in Canada for bankers’ acceptances (BAs) with a term of maturity of 1 year or less. In other words, it is the rate at which banks are willing to offer credit to companies utilizing BAs. In Canada, RBC® uses BAs as short-term, fixed rate vehicles for qualifying clients.

CDOR is administered by Refinitiv Benchmark Services (UK) Limited (“RBSL”), which is responsible for collecting input data and publishing the CDOR benchmark. Based on the recommendation from the independent CDOR Oversight Committee led by the Office of the Superintendent of Financial Institutions, RBSL has announced that the calculation and publication of the 6-month and 12-month CDOR tenors will cease effective May 14, 2021.

What will replace the 6- and 12-month BA or CDOR tenors?

RBC will not be offering 6 or 12-month BA or CDOR tenures after May 14, 2021. Clients will be offered only 1-month, 2-month and 3-month tenors after that date.

How does this affect BAs that extend beyond the effective date of May 14, 2021?

Existing BAs will not be affected, but for any that extend after May 14, 2021, only 1-month, 2-month and 3-month BA tenors will be offered at their maturity.

Is there any impact to the 1-month, 2-month and 3-month BA tenors?

These tenors will not be affected by this announcement.

CESSATION OF THE 6-MONTH AND 12-MONTH CDOR/BA TENORS

CDOR (Canadian Dollar Offered Rate) is the recognized financial benchmark in Canada for bankers’ acceptances (BAs) with a term of maturity of 1 year or less. In other words, it is the rate at which banks are willing to offer credit to companies utilizing BAs. In Canada, RBC® uses BAs as short-term, fixed rate vehicles for qualifying clients.

CDOR is administered by Refinitiv Benchmark Services (UK) Limited (“RBSL”), which is responsible for collecting input data and publishing the CDOR benchmark. Based on the recommendation from the independent CDOR Oversight Committee led by the Office of the Superintendent of Financial Institutions, RBSL has announced that the calculation and publication of the 6-month and 12-month CDOR tenors will cease effective May 14, 2021.

What will replace the 6- and 12-month BA or CDOR tenors?

RBC will not be offering 6 or 12-month BA or CDOR tenures after May 14, 2021. Clients will be offered only 1-month, 2-month and 3-month tenors after that date.

How does this affect BAs that extend beyond the effective date of May 14, 2021?

Existing BAs will not be affected, but for any that extend after May 14, 2021, only 1-month, 2-month and 3-month BA tenors will be offered at their maturity.

Is there any impact to the 1-month, 2-month and 3-month BA tenors?

These tenors will not be affected by this announcement.