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Transcription:

Covered Bond Swap Confirmation December 8, 2017 To: RBC Covered Bond Guarantor Limited Partnership, acting by its managing general partner, RBC Covered Bond GP Inc. 155 Wellington Street West, 14th Floor Toronto, Ontario Canada M5V 3K7 Attn: President Fax: (416) 974-1368 From: Re: Royal Bank of Canada Covered Bond Transaction (re GBP 650,000,000 Floating Rate Covered Bonds due December 8, 2022, Series CB35 (ISIN: XS1733227554, Common Code: 173322755) under the 32,000,000,000 Royal Bank of Canada Global Covered Bond Programme unconditionally and irrevocably guaranteed as to payments by RBC Covered Bond Guarantor Limited Partnership) And Re: Trade Reference: Dear Sir or Madam, The purpose of this letter is to confirm the terms and conditions of the transaction entered into between Royal Bank of Canada ( Party A ) and RBC Covered Bond Guarantor Limited Partnership, acting by its managing general partner, RBC Covered Bond GP Inc. ( Party B ) on the Trade Date specified below (the Transaction ). This facsimile constitutes a Confirmation as referred to in the Agreement as specified below. This Confirmation evidences a complete binding agreement between you and us as to the terms of the Transaction to which this Confirmation relates. This Confirmation supplements, forms part of, and is subject to, the ISDA Amended and Restated Covered Bond 2002 Master Agreement dated as of August 1, 2014, as amended restated or supplemented from time to time, between you and us (the Agreement ). All provisions contained in the Agreement shall govern this Confirmation except as expressly modified below. In the event of any inconsistency between the provisions of the Agreement and this Confirmation, this Confirmation will prevail for the purpose of this Transaction. The definitions and provisions contained in the 2006 ISDA Definitions (as published by the International Swaps and Derivatives Association, Inc.) (the Definitions ) are incorporated into this Confirmation. In the event of any inconsistency between any of the following, the first listed shall govern (i) this Confirmation; (ii) the Amended and Restated Master Definitions and Construction Agreement dated September 8, 2017 between Royal Bank of Canada, RBC Covered Bond Guarantor Limited Partnership, Computershare Trust Company of Canada, RBC Covered Bond GP Inc., 6848320 Canada Inc., PricewaterhouseCoopers LLP and each other Person who may from time to time become a party thereto, as amended, restated or Covered Bond Swap Confirmation Series CB35 CAN_DMS: \109722797\4

- 2 - supplemented from time to time (the Master Definitions and Construction Agreement ); and (iii) the Definitions. Capitalized terms used but not defined herein shall have the respective meanings given to them in the Master Definitions and Construction Agreement. For the purposes of the Definitions, references herein to a Transaction shall be deemed to be references to a Swap Transaction. The terms of the particular Transaction to which this Confirmation relates are as follows: Trade Date: December 1, 2017. Effective Date: The later of: (a) the Issue Date for Series CB35; and (b) the earlier of: (i) the Covered Bond Guarantee Activation Event Date; (ii) a Trigger Event Date; and (iii) an impending or actual insolvency on the part of the Issuer that constitutes an Issuer Event of Default pursuant to Condition 7.01(f). Termination Date: The earlier of: (a) (b) the Final Maturity Date for (or, if earlier, the date of redemption in whole, but not in part, of) Series CB35 or, if Party B notifies Party A prior to such Final Maturity Date of its inability to pay in full Guaranteed Amounts corresponding to the Final Redemption Amount for Series CB35, the final date on which an amount representing the Final Redemption Amount for Series CB35 is paid (but in any event, not later than the Extended Due for Payment Date for Series CB35) (the Scheduled Termination Date ); and the date designated therefor by the Bond Trustee and notified to Party A and Party B for purposes of realizing the Security in accordance with the Security Agreement and distributing the proceeds therefrom in accordance with the Post-Enforcement Priority of Payments following the enforcement of the Security pursuant to Condition 7.03 of the Final Terms for Series CB35. Covered Bond Swap Confirmation Series CB35 2

- 3 - Currency Swap Transaction Exchange Rate: CAD/GBP: 1.7114. Business Days: London, Toronto and TARGET2 Party B Amounts Floating Rate Payer: Party B. Party B Notional Amount: Party B Payment Amount: For each Guarantor LP Calculation Period, the product of (x) the Party A Currency Amount on the first day of such Guarantor LP Calculation Period and (y) the Currency Swap Transaction Exchange Rate. On each Guarantor LP Payment Date, Party B will pay to Party A the product of: (a) the Party B Notional Amount for the Guarantor LP Calculation Period ending on such Guarantor LP Payment Date; (b) the Party B Day Count Fraction; and (c) the Party B Floating Rate. Guarantor LP Calculation Period: Party B Day Count Fraction: Party B Business Day Convention: Party B Floating Rate: Party B Floating Rate Option: Designated Maturity: Party B Spread: Reset Date: Each period from and including a Guarantor LP Payment Date to, but excluding, the next following Guarantor LP Payment Date, provided that (a) the first Guarantor LP Calculation Period begins on, and includes, the Effective Date and (b) the final Guarantor LP Calculation Period shall end on, but exclude, the Scheduled Termination Date. Actual/365. Modified Following. Party B Floating Rate Option plus Party B Spread. CAD-BA-CDOR. 1 month. per annum. First Business Day of each Guarantor LP Calculation Period. Covered Bond Swap Confirmation Series CB35 3

- 4 - Party A Amounts Floating Rate Payer: Party A. Party A Currency Amount: Swap Provider Calculation Period: Swap Provider Payment Date: In respect of each Swap Provider Calculation Period, an amount in GBP equal to the Party A Notional Amount minus the aggregate of each Party A Interim Exchange Amount paid on or prior to the first day of such Swap Provider Calculation Period. Each period from and including a Swap Provider Payment Date to, but excluding, the next following applicable Swap Provider Payment Date, except that (a) the initial Swap Provider Calculation Period will commence on, and include, the Effective Date and (b) the final Swap Provider Calculation Period will end on, but exclude, the Scheduled Termination Date. 8 th of March, June, September and December of each year commencing March 8, 2018, each day that a portion of the Final Redemption Amount for Series CB35 is payable, and the 8 th day of each month after the Final Maturity Date for Series CB35, up to and including the Scheduled Termination Date. Party A Notional Amount: GBP 650,000,000. Party A Payment Amount: On each Swap Provider Payment Date, Party A will pay to Party B the product of: (a) the Party A Currency Amount for the Swap Provider Calculation Period ending on, but excluding, such Swap Provider Payment Date; (b) (c) the Party A Floating Rate Day Count Fraction; and the Party A Floating Rate. Party A Floating Rate: Party A Floating Rate Option: Designated Maturity: Party A Spread: Party A Floating Rate Option plus Party A Spread. GBP-LIBOR-BBA. 3 months prior to the Final Maturity Date for Series CB35 and 1 month from and after the Final Maturity Date for Series CB35. 0.23% per annum prior to the Final Maturity Date for Series CB35 and 0.273% per annum from and after the Final Maturity Date for Series CB35. Covered Bond Swap Confirmation Series CB35 4

- 5 - Reset Date: Party A Floating Rate Day Count Fraction: Party A Business Day Convention: First Business Day of each Swap Provider Calculation Period. Act/365 (Fixed). Modified Following Business Day Convention. Interim Exchanges Interim Exchange Date: Party A Interim Exchange Amount: Party B Interim Exchange Amount: If Party B notifies Party A that the payment of any or all of the Final Redemption Amount for Series CB35 shall be deferred until the Extended Due for Payment Date pursuant to Condition 6.01 of the Final Terms for Series CB35, then each Interest Payment Date for Series CB35 falling after the Final Maturity Date up to (and including) the relevant Extended Due for Payment Date for which Party B has provided at least three Business Days prior notice of the related Party B Interim Exchange Amount. With respect to an Interim Exchange Date, the amount in GBP notified by Party B to Party A as being the portion of the Final Redemption Amount for Series CB35 that Party B shall pay pursuant to Condition 6.01 of the Final Terms for Series CB35. With respect to an Interim Exchange Date, the Party A Interim Exchange Amount for such Interim Exchange Date converted into Canadian Dollars at the Currency Swap Transaction Exchange Rate. Final Exchanges Final Exchange Date: Party A Final Exchange Amount: If Party B is required to pay a Final Redemption Amount for Series CB35 on any day pursuant to Condition 7.02 of the Final Terms of Series CB35 and provides at least three Business Days prior notice thereof to Party A, then the day so specified in such notice. The amount in GBP notified by Party B to Party A as being the Final Redemption Amount for Series CB35 plus accrued but unpaid interest and any other amount due under Series CB35 (other than additional amounts payable under Condition 8 of the Final Terms for Series CB35) that Party B shall pay pursuant to Condition 7.02 of the Final Terms for Series CB35. Covered Bond Swap Confirmation Series CB35 5

- 6 - Party B Final Exchange Amount: The Party A Final Exchange Amount converted into Canadian Dollars at the Currency Swap Transaction Exchange Rate. Other Provisions Calculation Agent: Party A. Account Details Account for payments to Party A in CAD: Bank: SWIFT: Beneficiary account: Beneficiary account number: Beneficiary SWIFT ID: or such other account as Party A may direct from time to time. Account for payments to Party B in GBP: Such account as Party B may direct from time to time. Contact Details for notices Party A Royal Bank of Canada 155 Wellington Street West, 14 th Floor Toronto, Ontario Canada M5V 3K7 Attention: Managing Director, Capital & Term Funding, Corporate Treasury Facsimile No.: (416) 974-1368. Party B RBC Covered Bond Guarantor Limited Partnership c/o RBC Covered Bond GP Inc. 155 Wellington Street West, 14 th Floor Toronto, Ontario Canada M5V 3K7 Attention: President Facsimile No: (416) 974-1368. [Remainder of page intentionally left blank] Covered Bond Swap Confirmation Series CB35 6