Chicago, Oct. 25 – Royal Bank of Canada priced $635,000 of 0% notes due Feb. 25, 2027 linked to the MSCI World ESG Quality Select Low Volatility 8% Risk Control 3% Decrement index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par plus 1.32 times the index return.
Otherwise, investors will be exposed to the losses of the index with a minimum payout of $900 per $1,000 notes.
The underlying index is designed to measure the performance of the MSCI World ESG Quality Select Low Volatility Index, Net Total Return while targeting a specific level of risk and applying a constant markdown. The base index is designed to represent the performance of a strategy that seeks lower risk than the MSCI World index, along with improvement in quality, ESG and carbon emission intensity characteristics. The parent index measures the performance of some large and mid-cap companies across 23 developed markets countries.
The issuer noted that it intends to use proceeds from the notes to fund businesses and projects that meet requirements under its sustainable bond framework; however, it is not obligated to allocate proceeds to eligible green assets.
RBC Capital Markets LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Notes
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| Underlying index: | MSCI World ESG Quality Select Low Volatility 8% Risk Control 3% Decrement index
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| Amount: | $635,000
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| Maturity: | Feb. 25, 2027
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 1.32 times any index gain; otherwise, exposure to losses of stock with minimum payout of $900 per $1,000 note
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| Initial level: | 1,705.81
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| Pricing date: | Feb. 22
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| Settlement date: | Feb. 25
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| Agent: | RBC Capital Markets, LLC
|
| Fees: | 3.25%
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| Cusip: | 78016FDV3
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