New Issue: RBC sells $7.01 million barrier enhanced return notes on index, ETF basket

By Wendy Van Sickle

Columbus, Ohio, July 20 – Royal Bank of Canada priced $7.01 million of 0% barrier enhanced return notes due July 24, 2020 linked to the MSCI Europe index with a 75% weight and the iShares MSCI Emerging Markets exchange-traded fund with a 25% weight, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any basket gain.

Investors will receive par if the basket falls by up to 30% and be fully exposed to any losses if the basket finishes below its 30% barrier level.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Barrier enhanced return notes
Basket components:	MSCI Europe index (75% weight), iShares MSCI Emerging Markets exchange-traded fund (25% weight)
Amount:	$7,005,000
Maturity:	July 24, 2020
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any basket gain; par if the basket falls by up to 30%; 1% loss for each 1% decline if it falls below barrier
Initial levels:	130.07 for index, $43.71 for ETF
Barrier level:	70% of initial level
Pricing date:	July 19
Settlement date:	July 24
Agents:	RBC Capital Markets, LLC
Fees:	3%
Cusip:	78012K2N6

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