Published on 7/5/2023 in the Prospect News Structured Products Daily.
New Issue: RBC sells $24.06 million capped notes with absolute return buffer on S&P 500
By Wendy Van Sickle
Columbus, Ohio, July 5 – Royal Bank of Canada priced $24.06 million of 0% capped notes with absolute return buffer due June 27, 2025 linked to an international equity basket basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with an initial weight of 40%, the FTSE 100 index and the Nikkei Stock Average index each with an initial weight of 20%, the Swiss Market index and the S&P/ASX 200 index each with an initial weight of 7.5% and the FTSE China 50 index with an initial weight of 5%.
The payout at maturity will be par of $10 plus any basket gain, capped at par plus 25%.
If the basket finishes flat or falls by up to 20.4%, investors will receive par plus the absolute value of the basket return.
Otherwise, investors will lose 1% for every 1% decline beyond 20.4%.
BofA Securities, Inc. is the agent.
| Issuer: | Royal Bank of Canada
|
| Issue: | Capped notes with absolute return buffer
|
| Underlying basket: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei Stock (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight), FTSE China 50 (5% weight)
|
| Amount: | $24,060,880
|
| Maturity: | June 27, 2025
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any basket gain, capped at 25%; if basket falls by up to 20.4%, par plus absolute value of basket return; otherwise, 1% loss for every 1% decline below 20.4%
|
| Initial levels: | 4,354.69 for Stoxx, 7,741.69 for FTSE, 33,234.14 for Nikkei, 11,170.51 for Swiss, 7,194.912 for S&P/ASX, 12,353.97 for FTSE China 50
|
| Threshold value: | 79.6% of initial value
|
| Pricing date: | June 29
|
| Settlement date: | July 7
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 78074B608
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
