10:41 AM EDT, 06/10/2024 (MT Newswires) -- Royal Bank of Canada ( RY ) said on Monday that the Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions gave the approval for a normal course issuer bid for the bank to buy up to 30 million of its common shares.

Purchases under the normal course issuer bid may begin on June 12 and continue until June 11, 2025. The maximum number of shares that may be repurchased for cancellation represents about 2.12% of the outstanding common shares on May 31. The shares acquired in the bid will be canceled.

The bank will set up an automatic share purchase plan on June 12.

In more company news, Royal Bank of Canada ( RY ) said it plans to redeem all outstanding non-viability contingent capital 2.74% subordinated debentures due July 25, 2029, for 100% of their principal amount plus accrued interest to, but excluding the redemption date.

The redemption will occur on July 25. The current principal amount of 2.74% NVCC subordinated debentures outstanding is $1.50 billion.

Also, the bank plans to redeem all of its issued and outstanding NVCC non-cumulative five-year rate reset first preferred shares, Series BB, on Aug. 24 for cash at a redemption price of $25 per share to be paid on Aug. 24.

There are 20 million Series BB shares outstanding, representing $500 million of capital.

The bank will use its general corporate funds to fund the redemption of the debentures and the NVCC non-cumulative five-year rate reset first preferred shares, Series BB.

The bank will pay the final quarterly dividend of $0.228125 for each of the Series BB shares separately from the redemption price for each of the Series BB shares on Aug. 23 to shareholders of record at the close of business on July 25. After such dividend payments, the holders of Series BB shares will cease to be entitled to dividends.

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