Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-227001
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The information in this preliminary pricing supplement is not complete and may be changed.
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Preliminary Pricing Supplement
Subject to Completion:
Dated January 5, 2021
To the Product Prospectus Supplement FIN-1 Dated
September 20, 2018, and the Prospectus and Prospectus Supplement, each dated September 7, 2018 |
$_________
Redeemable Step Up Notes
Due January 29, 2029
Royal Bank of Canada
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Years 1-5:
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1.00% per annum
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Year 6:
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1.10% per annum
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Year 7:
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1.20% per annum
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Year 8:
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1.50% per annum
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Redeemable Step Up Notes
Royal Bank of Canada
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Issuer:
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Royal Bank of Canada (“Royal Bank”)
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Issue:
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Senior Global Medium-Term Notes, Series H
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Underwriter:
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RBC Capital Markets, LLC
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Currency:
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U.S. Dollars
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Minimum Investment:
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$1,000 and minimum denominations of $1,000 in excess of $1,000
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Pricing Date:
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January 27, 2021
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Issue Date:
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January 29, 2021
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Maturity Date:
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January 29, 2029
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Type of Note:
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Step Up Note
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Interest Rate:
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Years 1-5:
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1.00% per annum
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Year 6:
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1.10% per annum
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Year 7:
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1.20% per annum
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Year 8:
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1.50% per annum
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Interest Payment
Dates:
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Semi-annually, on January 29 and July 29 of each year, commencing on July 29, 2021. If an Interest Payment Date is not a New York business day, interest will be paid on the
next New York business day, without adjustment for period end dates and no interest will be paid in respect of the delay.
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Redemption:
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Redeemable at our option. If we redeem the Notes, we will pay you the principal amount, together with the applicable interest payment.
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Call Dates:
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The Notes are callable, in whole, but not in part, on January 29, 2023 and on any subsequent Interest Payment Date, upon 10 business days’ prior written notice.
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Survivor’s Option:
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Not applicable.
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Canadian Bail-in
Powers
Acknowledgment:
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The Notes are bail-inable notes. See “Specific Terms of the Notes—Agreement with Respect to the Exercise of Canadian Bail-in Powers.”
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U.S. Tax Treatment:
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Please see the discussion (including the opinion of our counsel Morrison & Foerster LLP) in the product prospectus supplement FIN-1 dated September 20, 2018 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, 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
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Redeemable Step Up Notes
Royal Bank of Canada
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“Supplemental Discussion of U.S. Federal 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 applies to your Notes.
The accompanying product prospectus supplement notes that FATCA withholding on payments of gross proceeds from a sale or redemption of the Notes will only apply to payments
made after December 31, 2018. That discussion is modified to reflect regulations proposed by the U.S. Treasury Department that eliminate the requirement of FATCA withholding on payments of gross proceeds upon the disposition of financial
instruments. The U.S. Treasury Department has indicated that taxpayers may rely on these proposed regulations pending their finalization. Prospective investors are urged to consult with their own tax advisors regarding the possible
implications of FATCA on their investment in the Notes.
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Calculation Agent:
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RBC Capital Markets, LLC
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Listing:
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The Notes will not be listed on any securities exchange.
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Clearance and
Settlement:
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DTC global (including through its indirect participants Euroclear and Clearstream, Luxembourg as described under “Description of Debt Securities—Ownership and Book-Entry
Issuance” in the prospectus dated September 7, 2018).
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Terms Incorporated in
the Master Note:
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All of the terms appearing above the item captioned “Listing” on page P-2 of this pricing supplement and the terms appearing under the caption “General Terms of the Notes” in
the product prospectus supplement FIN-1 dated September 20, 2018, as modified by this pricing supplement.
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Redeemable Step Up Notes
Royal Bank of Canada
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Redeemable Step Up Notes
Royal Bank of Canada
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Redeemable Step Up Notes
Royal Bank of Canada
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Redeemable Step Up Notes
Royal Bank of Canada
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