RBC plans absolute return barrier notes tied to EAFE, EM fund basket

By Susanna Moon

Chicago, Feb. 1 – Royal Bank of Canada plans to price 0% absolute return barrier securities due in 42 to 48 months linked to a basket consisting of the iShares MSCI EAFE exchange-traded fund and iShares MSCI Emerging Markets ETF, equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.

If the basket finishes at or above its initial level, the payout at maturity will be par plus any basket gain up to a maximum return of 33%.

If the basket falls by up to 26%, the payout will be par plus the absolute value of the return.

Otherwise, investors will lose 1% for each 1% decline.

RBC Capital Markets LLC is the agent.

The notes will price on Feb. 5 and settle on Feb. 8.

The Cusip number is 78013XEU8.

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