By William Gullotti
Buffalo, N.Y., June 2 – Royal Bank of Canada priced $1.75 million of 0% notes due May 31, 2028 linked to the MSCI USA ESG Quality Select Low Volatility 10% Risk Control 2% 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 1.06 times the index return.
If the index return is zero or negative, the payout will be par.
The underlying index is designed to measure the performance of the MSCI USA ESG Quality Select Low Volatility Index, Gross 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 USA 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 in the U.S. market.
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
|
| Issue: | Notes
|
| Underlying index: | MSCI USA ESG Quality Select Low Volatility 10% Risk Control 2% Decrement index
|
| Amount: | $1,751,000
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| Maturity: | May 31, 2028
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.06 times any index gain; otherwise, par
|
| Initial level: | 2,482.413
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| Pricing date: | May 25
|
| Settlement date: | May 31
|
| Agent: | RBC Capital Markets, LLC
|
| Fees: | 3.25%
|
| Cusip: | 78016NAY3
|
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