Obligation Royal Bank of Canada 3% ( US78012KHG58 ) en USD

Royal Bank of Canada

99.05 % ⇌

Canada

US78012KHG58 ( en USD )

3% par an ( paiement semestriel )

24/12/2025

Prospectus brochure de l'obligation Royal Bank of Canada US78012KHG58 en USD 3%, échéance 24/12/2025

1 000 USD

4 341 000 USD

78012KHG5

AA- ( Haute qualité )

Aa1 ( Haute qualité )

24/06/2025 ( Dans 61 jours )

La Banque Royale du Canada (RBC) est une institution financière multinationale canadienne offrant une large gamme de services financiers, incluant les services bancaires aux particuliers et aux entreprises, la gestion de patrimoine, les marchés des capitaux et l'assurance.

L'Obligation émise par Royal Bank of Canada ( Canada ) , en USD, avec le code ISIN US78012KHG58, paye un coupon de 3% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 24/12/2025

L'Obligation émise par Royal Bank of Canada ( Canada ) , en USD, avec le code ISIN US78012KHG58, a été notée Aa1 ( Haute qualité ) par l'agence de notation Moody's.

L'Obligation émise par Royal Bank of Canada ( Canada ) , en USD, avec le code ISIN US78012KHG58, a été notée AA- ( Haute qualité ) par l'agence de notation Standard & Poor's ( S&P ).

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424B2 1 form424b2.htm 10NC3 STEP UP 12.21
RBC Capital Markets®
Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-
203433
Pricing Supplement
$4,341,000
Dated December 21, 2015
Redeemable Step Up Notes,
to the Product Prospectus Supplement FIN-1, Prospectus
Supplement and Prospectus, each dated April 30, 2015
Due December 24, 2025
Royal Bank of Canada
Royal Bank of Canada is offering the Redeemable Step Up Notes (the "Notes") described below.
The CUSIP number for the Notes is 78012KHG5.
The Notes will accrue interest at the following rates during the indicated year of their term:
Years 1-3:
2.50% per annum
x
Years 4-8:
3.00% per annum
x
Years 9-10:
5.00% per annum
x
We will pay interest on the Notes on June 24 and December 24 of each year (each an "Interest Payment
Date"), commencing on June 24, 2016.
We may call the Notes in whole, but not in part, on December 24, 2018 and December 24, 2023, upon 10
business days' prior written notice. Any payments on the Notes are subject to our credit risk.
The Notes will not be listed on any U.S. securities exchange.
Investing in the Notes involves a number of risks. See "Risk Factors" beginning on page S-1 of the prospectus
supplement dated April 30, 2015, "Additional Risk Factors Specific to the Notes" beginning on page PS-5 of the
product prospectus supplement FIN-1 dated April 30, 2015 and "Additional Risk Factors" on page P-5 of this
pricing supplement.
The Notes will not constitute deposits insured by the Canada Deposit Insurance Corporation, the U.S. Federal
Deposit Insurance Corporation (the "FDIC") or any other Canadian or U.S. government agency or
instrumentality.
Neither the Securities and Exchange Commission (the "SEC") nor any state securities commission has
approved or disapproved of these securities or determined that this pricing supplement is truthful or complete.
Any representation to the contrary is a criminal offense.
RBC Capital Markets, LLC has offered the Notes at varying public offering prices related to prevailing market
prices, and will purchase the Notes from us on the Issue Date at purchase prices that will be between 98.20%
and 99.00% of the principal amount. See "Supplemental Plan of Distribution (Conflicts of Interest)" on page
P-5 below.
To the extent that the total aggregate principal amount of the Notes being offered by this pricing supplement is
not purchased by investors in the offering, one or more of our affiliates may purchase the unsold portion.
However, our affiliates will not purchase more than 15% of the principal amount of the Notes.
We will deliver the Notes in book-entry only form through the facilities of The Depository Trust Company on
December 24, 2015, against payment in immediately available funds.
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RBC Capital Markets, LLC
http://www.sec.gov/Archives/edgar/data/1000275/000114036115045444/form424b2.htm
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Redeemable Step Up Notes,
Due December 24, 2025
SUMMARY
The information in this "Summary" section is qualified by the more detailed information set forth in this pricing
supplement, the product prospectus supplement FIN-1, the prospectus supplement, and the prospectus.
Issuer:
Royal Bank of Canada ("Royal Bank")
Issue:
Senior Global Medium-Term Notes, Series G
Underwriter:
RBC Capital Markets, LLC
Currency:
U.S. Dollars
Minimum
$1,000 and minimum denominations of $1,000 in excess of $1,000
Investment:
Pricing Date:
December 21, 2015
Issue Date:
December 24, 2015
Maturity Date:
December 24, 2025
CUSIP:
78012KHG5
Type of Note:
Step Up Note
Interest Rate:
Years 1-3:
2.50% per annum
Years 4-8:
3.00% per annum
Years 9-10:
5.00% per annum
Interest
Semi-annually, on June 24 and December 24 of each year, commencing on June 24, 2016. If
Payment
an Interest Payment Date is not a New York business day, interest shall be paid on the next
Dates:
New York business day, without adjustment for period end dates and no interest shall be paid
in respect of the delay.
Redemption:
Redeemable at our option. If we redeem the Notes, we will pay you the principal amount,
together with the applicable interest payment.
Call Dates:
The Notes are callable, in whole, but not in part, on December 24, 2018 and December 24,
2023, upon 10 business days' prior written notice.
Survivor's
Applicable. See "General Terms of the Notes--Survivor's Option" beginning on page PS-17 of
Option:
the product prospectus supplement FIN-1 dated April 30, 2015.
U.S. Tax
Please see the section below, "Supplemental Discussion of U.S. Federal Income Tax
Treatment:
Consequences," and the discussion (including the opinion of our counsel Morrison & Foerster
LLP) in the product prospectus supplement FIN-1 dated April 30, 2015 under "Supplemental
Discussion of U.S. Federal Income Tax Consequences" and specifically the discussion under
"Supplemental Discussion of U.S. Federal Income Tax Consequences--Supplemental U.S.
Tax Considerations--Where the term of your notes will exceed one year--Fixed Rate Notes,
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Floating Rate Notes, Inverse Floating Rate Notes, Step Up Notes, Leveraged Notes, Range
Accrual Notes, Dual Range Accrual Notes and Non-Inversion Range Accrual Notes," and
"Supplemental Discussion of U.S. Federal
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Redeemable Step Up Notes,
Due December 24, 2025
Income Tax Consequences--Supplemental U.S. Tax Considerations--Where the term of
your notes will exceed one year--Sale, Redemption or Maturity of Notes that Are Not
Treated as Contingent Payment Debt Instruments," which apply to your Notes.
Calculation Agent: RBC Capital Markets, LLC
Listing:
The Notes will not be listed on any securities exchange.
Clearance and
DTC global (including through its indirect participants Euroclear and Clearstream,
Settlement:
Luxembourg as described under "Description of Debt Securities--Ownership and Book-
Entry Issuance" in the prospectus dated April 30, 2015).
Terms
All of the terms appearing above the item captioned "Listing" on page P-2 of this pricing
Incorporated in the supplement and the terms appearing under the caption "General Terms of the Notes" in
Master Note:
the product prospectus supplement FIN-1 dated April 30, 2015, as modified by this pricing
supplement.
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Redeemable Step Up Notes,
Due December 24, 2025
ADDITIONAL TERMS OF YOUR NOTES
You should read this pricing supplement together with the prospectus dated April 30, 2015, as supplemented
by the prospectus supplement dated April 30, 2015 and the product prospectus supplement FIN-1 dated April
30, 2015, relating to our Senior Global Medium-Term Notes, Series G, of which these Notes are a part.
Capitalized terms used but not defined in this pricing supplement will have the meanings given to them in the
product prospectus supplement FIN-1. In the event of any conflict, this pricing supplement will control. The
Notes vary from the terms described in the product prospectus supplement FIN-1 in several important ways.
You should read this pricing supplement carefully.
This pricing supplement, together with the documents listed below, contains the terms of the Notes and
supersedes all 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, brochures or other educational materials of ours. You should carefully consider, among other things,
the matters set forth in "Risk Factors" in the prospectus supplement dated April 30, 2015, "Additional Risk
Factors Specific to the Notes" in the product prospectus supplement FIN-1 dated April 30, 2015 and "Additional
Risk Factors" in this pricing supplement, as the Notes involve risks not associated with conventional debt
securities. We urge you to consult your investment, legal, tax, accounting and other advisors before you invest
in the Notes. You may access these documents on the SEC website at www.sec.gov as follows (or if that
address has changed, by reviewing our filings for the relevant date on the SEC website):
Prospectus dated April 30, 2015:
http://www.sec.gov/Archives/edgar/data/1000275/000121465915003442/l429151424b3.htm
Prospectus Supplement dated April 30, 2015:
http://www.sec.gov/Archives/edgar/data/1000275/000121465915003446/n429152424b3.htm
Product Prospectus Supplement FIN-1 dated April 30, 2015:
https://www.sec.gov/Archives/edgar/data/1000275/000121465915003467/a430153424b5.htm
Our Central Index Key, or CIK, on the SEC website is 1000275. As used in this pricing supplement, the
"Company," "we," "us", or "our" refers to Royal Bank of Canada.
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Redeemable Step Up Notes,
Due December 24, 2025
ADDITIONAL RISK FACTORS
The Notes involve risks not associated with an investment in ordinary fixed rate notes. This section describes
the most significant risks relating to the terms of the Notes. For additional information as to these risks, please
see the product prospectus supplement FIN-1 dated April 30, 2015 and the prospectus supplement dated April
30, 2015. You should carefully consider whether the Notes are suited to your particular circumstances before
you decide to purchase them. Accordingly, prospective investors should consult their financial and legal
advisors as to the risks entailed by an investment in the Notes and the suitability of the Notes in light of their
particular circumstances.
Early Redemption Risk. We have the option to redeem the Notes on the Call Dates set forth above. It is more
likely that we will redeem the Notes prior to their stated maturity date to the extent that the interest payable on
the Notes is greater than the interest that would be payable on our other instruments of a comparable maturity,
terms and credit rating trading in the market. If the Notes are redeemed prior to their stated maturity date, you
may have to re-invest the proceeds in a lower rate environment.
Investors Are Subject to Our Credit Risk, and Our Credit Ratings and Credit Spreads May Adversely
Affect the Market Value of the Notes. Investors are dependent on Royal Bank's ability to pay all amounts due
on the Notes on the interest payment dates and at maturity, and, therefore, investors are subject to the credit
risk of Royal Bank and to changes in the market's view of Royal Bank's creditworthiness. Any decrease in
Royal Bank's credit ratings or increase in the credit spreads charged by the market for taking Royal Bank's
credit risk is likely to adversely affect the market value of the Notes.
SUPPLEMENTAL DISCUSSION OF U.S. FEDERAL INCOME TAX
CONSEQUENCES
The following disclosure supplements, and to the extent inconsistent, supersedes, the discussion in the product
prospectus supplement dated April 30, 2015 under "Supplemental Discussion of U.S. Federal Income Tax
Consequences."
The U.S. Treasury Department and the IRS have announced that withholding under the Foreign Account Tax
Compliance Act (as discussed in the product prospectus supplement) on payments of gross proceeds from a
sale or redemption of the Notes will only apply to payments made after December 31, 2018.
SUPPLEMENTAL PLAN OF DISTRIBUTION (CONFLICTS OF INTEREST)
Delivery of the Notes will be made against payment for the Notes on December 24, 2015, which is the third
(3rd) business day following the Pricing Date (this settlement cycle being referred to as "T+3"). See "Plan of
Distribution" in the prospectus supplement dated April 30, 2015. For additional information as to the
relationship between us and RBC Capital Markets, LLC, please see the section "Plan of Distribution--Conflicts
of Interest" in the prospectus dated April 30, 2015.
After the initial offering of the Notes, the price to the public may change. To the extent that the total aggregate
principal amount of the Notes being offered by this pricing supplement is not purchased by investors in the
offering, one or more of our affiliates may purchase the unsold portion. However, our affiliates will not purchase
more than 15% of the principal amount of the Notes. Sales of these Notes by our affiliates could reduce the
market price and the liquidity of the Notes that you purchase.
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RBC Capital Markets, LLC
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Redeemable Step Up Notes,
Due December 24, 2025
We may use this pricing supplement in the initial sale of the Notes. In addition, RBC Capital Markets, LLC 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.
VALIDITY OF THE NOTES
In the opinion of Norton Rose Fulbright Canada LLP, the issue and sale of the Notes has been duly authorized
by all necessary corporate action of the Bank in conformity with the Indenture, and when the Notes have been
duly executed, authenticated and issued in accordance with the Indenture and delivered against payment
therefor, the Notes will be validly issued and, to the extent validity of the Notes is a matter governed by the
laws of the Province of Ontario or Québec, or the laws of Canada applicable therein, and will be valid
obligations of the Bank, subject to equitable remedies which may only be granted at the discretion of a court of
competent authority, subject to applicable bankruptcy, insolvency and other laws of general application
affecting creditors' rights, and subject to limitations as to the currency in which judgments in Canada may be
rendered, as prescribed by the Currency Act (Canada). This opinion is given as of the date hereof and is
limited to the laws of the Provinces of Ontario and Quebec and the federal laws of Canada applicable thereto.
In addition, this opinion is subject to customary assumptions about the Trustee's authorization, execution and
delivery of the Indenture and the genuineness of signatures and certain factual matters, all as stated in the
letter of such counsel dated April 30, 2015, which has been filed as Exhibit 5.1 to Royal Bank's Form 6-K filed
with the SEC on April 30, 2015.
In the opinion of Morrison & Foerster LLP, when the Notes have been duly completed in accordance with the
Indenture and issued and sold as contemplated by the prospectus supplement and the prospectus, the Notes
will be valid, binding and enforceable obligations of Royal Bank, entitled to the benefits of the Indenture,
subject to applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally, concepts of
reasonableness and equitable principles of general applicability (including, without limitation, concepts of good
faith, fair dealing and the lack of bad faith). This opinion is given as of the date hereof and is limited to the laws
of the State of New York. This opinion is subject to customary assumptions about the Trustee's authorization,
execution and delivery of the Indenture and the genuineness of signatures and to such counsel's reliance on
the Bank and other sources as to certain factual matters, all as stated in the legal opinion dated April 30, 2015,
which has been filed as Exhibit 5.2 to the Bank's Form 6-K dated April 30, 2015.
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RBC Capital Markets, LLC
http://www.sec.gov/Archives/edgar/data/1000275/000114036115045444/form424b2.htm
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