New Issue: RBC prices $626,000 absolute return barrier notes linked to iShares MSCI ETFs

By Wendy Van Sickle

Columbus, Ohio, Sept. 5 – Royal Bank of Canada price $626,000 of 0% absolute return barrier enhanced return notes due Sept. 2, 2021 linked to the lesser performing of the iShares MSCI EAFE exchange-traded fund and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the return of the lesser-performing ETF is positive, the payout at maturity will be par plus 144.56% of the lesser-performing ETF’s return.

If the lesser-performing ETF’s final share price is less than or equal to its initial share price but greater than or equal to its barrier level, 70% of its initial share price, the payout will be par plus the absolute value of that ETF’s return.

If the lesser-performing ETF finishes below its barrier level, investors will be fully exposed to that ETF’s decline from its initial share price.

RBC Capital Markets LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Absolute return barrier enhanced notes
Underlying ETFs:	iShares MSCI EAFE exchange-traded fund and iShares MSCI Emerging Markets exchange-traded fund
Amount:	$626,000
Maturity:	Sept. 2, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	If lesser-performing ETF gains, par 144.56% of lesser-performing ETF’s return; if lesser-performing ETF falls by up to 30%, par plus the absolute value of the index return; lesser-performing ETF finishes below barrier level, full exposure to that ETF’s decline from its initial share price
Initial levels:	$66.48 for EAFE, $46.69 for Emerging Markets
Barrier level:	$46.54 for EAFE, $31.28 for Emerging Markets, 70% of initial level
Pricing date:	Aug. 29
Settlement date:	Aug. 31
Underwriter:	RBC Capital Markets, LLC
Fees:	2.75%
Cusip:	78012K5M5

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