LONDON INTERBANK OFFERED RATE TRANSITION

This information is meant to update you about the transition of a key global benchmark interest rates and the possible impacts on products you may hold with RBC.

LIBOR (London Interbank Offered Rate) is a widely referenced benchmark interest rate used globally for loans, bonds, derivatives and other floating rate instruments. LIBOR's administrator, ICE Benchmark Administration Limited (IBA) has started consultations with the intention to cease the publication of the one week and two month US dollar LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining US dollar LIBOR settings immediately following the LIBOR publication on June 30, 2023. LIBOR's regulator, the United Kingdom's Financial Conduct Authority (FCA), has issued a statement welcoming these developments.

What rate will replace LIBOR?

Currently, the replacement rate is still unknown, but it appears the US dollar LIBOR will most likely be replaced by a rate referencing the Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. Loans or products in currencies other than US dollars will be replaced by different rates.

How will my RBC products be affected?

The impact of a new interest rate will differ depending on the product or service that you have. As the migration progresses away from LIBOR, RBC will continue to monitor the situation and provide you with updates on how your products may be affected by these developments.

What is RBC doing about this transition?

RBC is actively monitoring the reform process and approach taken by international regulators and industry working groups to fully transition from LIBOR to a replacement rate.

What do I have to do?

There is no action required on your part at this stage, and no changes will be made to any of your LIBOR linked products without us notifying you further.

How will you notify me about changes to my products?

Once we have more information about how this transition will affect your RBC products or services, we will notify you via your preferred communication channel.

LONDON INTERBANK OFFERED RATE TRANSITION

LIBOR (London Interbank Offered Rate) is a widely referenced benchmark interest rate used globally for loans, bonds, derivatives and other floating rate instruments. The Financial Conduct Authority (FCA), the governing body for LIBOR, has stated it will no longer compel banks to submit LIBOR rates after the end of 2021.

This information is meant to update you about the transition of key global benchmark interest rates, and the possible impacts on products you may hold with RBC.

What rate will replace LIBOR?

Currently, the replacement rate is still unknown, but it appears the US dollar LIBOR will most likely be replaced by a rate referencing the Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. Loans or products in currencies other than US dollars will be replaced by different rates.

How will my RBC products be affected?

The impact of a new interest rate will differ depending on the product or service that you have. As the migration progresses away from LIBOR, RBC will continue to monitor the situation and provide you with updates on how your products may be affected by these developments.

What is RBC doing about this transition?

RBC is actively monitoring the reform process and approach taken by international regulators and industry working groups to fully transition from LIBOR to a replacement rate by the end of 2021.

What do I have to do?

There is no action required on your part at this stage, and no changes will be made to any of your LIBOR linked products without us notifying you further.

How will you notify me about changes to my products?

Once we have more information about how this transition will affect your RBC products or services, we will notify you via your preferred communication channel.