RBC plans buffered bullish enhanced return notes on fund, index basket

By Jennifer Chiou

New York, Oct. 8 - Royal Bank of Canada plans to price 0% buffered bullish enhanced return notes due Feb. 15, 2018 linked to a basket of exchange-traded funds and indexes, according to an FWP with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 70% weight, the iShares MSCI EAFE ETF with a 15% weight, the SPDR S&P Midcap 400 ETF with an 8% weight, the iShares MSCI Emerging Market ETF with a 4% weight and the Russell 2000 index with a 3% weight.

The payout at maturity will be par plus 107% to 116% of any increase in the basket.

Investors will receive par if the index falls by up to 25% and will lose 1.3333% for every 1% that the index declines beyond 25%.

The notes (Cusip: 78010UGK7) are expected to price on Oct. 10 and settle on Oct. 16.

RBC Capital Markets, LLC is the agent.

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