RBC plans to price enhanced return notes tied to fund basket

By Wendy Van Sickle

Columbus, Ohio, May 12 – Royal Bank of Canada plans to price 0% enhanced return notes due Nov. 18, 2020 linked to a basket of unequally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying components are the SPDR S&P 500 exchange-traded fund with a 40% weight, and the iShares Russell 2000 exchange-traded fund, the iShares MSCI EAFE exchange-traded fund and the iShares MSCI Emerging Markets exchange-traded fund, each with a 20% weight.

The payout at maturity will be par plus 300% of any basket gain up to a 112.5% to 114.5% maximum payout.

Investors will be fully exposed to any decline in the basket.

RBC Capital Markets, LLC is the agent.

The notes (Cusip: 78012KP92) are expected to price on May 15.

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