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ItalianoBond Royal Bank of Canada (London Branch) 0% ( XS1924997551 ) in USD
| Issuer | Royal Bank of Canada (London Branch) | ||||||||||||||
| Market price |  100.00 % ⇌ |
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| Country |  Canada
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| ISIN code |
 XS1924997551 ( in USD )
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| Interest rate | 0% | ||||||||||||||
| Maturity | 27/12/2048 | ||||||||||||||
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Prospectus brochure in PDF format |
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| Minimal amount | 1 000 000 USD | ||||||||||||||
| Total amount | 50 000 000 USD | ||||||||||||||
| Detailed description |
The Royal Bank of Canada (London Branch) is a subsidiary of Royal Bank of Canada, offering a range of financial services including corporate banking, investment banking, and wealth management to clients in the London, UK market. **Analysis of the Royal Bank of Canada (London Branch) Zero-Coupon Bond (ISIN: XS1924997551)** This financial analysis delves into the specifics of a debt instrument identified by its ISIN XS1924997551, issued by the Royal Bank of Canada's London Branch, a significant entity within one of Canada's premier financial institutions. The Royal Bank of Canada (RBC) stands as a global banking leader, offering a comprehensive suite of financial services spanning personal and commercial banking, wealth management, insurance, investor services, and capital markets across diverse geographies. Its London Branch serves as a critical nexus for RBC's international capital markets operations and client service in the EMEA region, operating under the regulatory framework implied by the issuer's primary country of origin, Canada. This particular bond is structured as an obligation denominated in United States Dollars (USD), making it accessible to a wide international investor base seeking exposure to the USD market. The total issuance volume for this instrument is USD 50,000,000, with a substantial minimum purchase threshold set at USD 1,000,000. This high minimum investment suggests the bond is primarily aimed at institutional investors, corporate treasuries, or ultra-high-net-worth individuals, aligning with sophisticated portfolio management strategies rather than retail investment. A defining characteristic of this bond is its stated interest rate of 0%. This indicates that the instrument functions as a zero-coupon bond, meaning no periodic coupon payments are distributed to bondholders throughout its term. Instead, the traditional yield for such instruments is derived from capital appreciation, where the bond is typically purchased at a discount to its face value and redeemed at par upon maturity. However, the current market price for this specific bond is listed at 100% of its par value. This unique combination of a 0% interest rate and a par market price implies that, if acquired at its current trading level and held until its maturity date of December 27, 2048, the bond would not generate conventional interest income or capital gains from its intrinsic structure. Such a profile may suggest its utility in specific strategic contexts, such as collateral arrangements, liquidity management, or tailored tax-efficient structures for particular investor profiles, rather than serving as a primary source of investment yield. Despite a listed payment frequency of 2 (indicating semi-annual for coupon-paying bonds), this attribute does not apply to coupon distribution for this zero-coupon instrument, likely representing a standard field in bond data that is non-applicable given the 0% interest rate. |
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