By Wendy Van Sickle
Columbus, Ohio, Jan. 9 – Royal Bank of Canada priced $1.01 million of autocallable contingent coupon barrier notes due Dec. 26, 2025 linked to the performance of the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 16.6% per year if the ETF closes at or above its coupon barrier price, 75% of its initial price, on the observation date for that quarter.
The notes will be called at par if the ETF closes at or above its initial share price on any quarterly observation date.
If the notes are not called, the payout at maturity will be par unless the ETF finishes below its 75% trigger price, in which case investors will be fully exposed to the decline.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Autocallable contingent coupon barrier notes
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| Underlying ETF: | Energy Select Sector SPDR fund
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| Amount: | $1,012,000
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| Maturity: | Dec. 26, 2025
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| Coupon: | 16.6% annual rate, payable quarterly if ETF closes at or above trigger price on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless ETF finishes below trigger price, in which case full exposure to decline
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| Call: | At par if ETF closes at or above initial share price on any quarterly observation date
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| Initial share price: | $84.37
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| Coupon barrier price: | $63.28; 75% of initial share price
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| Trigger price: | $63.28; 75% of initial share price
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| Pricing date: | Dec. 22
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| Settlement date: | Dec. 28
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 2%
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| Cusip: | 78016HGA2
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