New Issue: RBC prices $2 million contingent digital return barrier notes linked to Alibaba

By Taylor Fox

New York, Dec. 7 – Royal Bank of Canada priced $2 million of 0% contingent digital return barrier notes due Dec. 8, 2021 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to an 424B2 filing with the Securities and Exchange Commission.

If the stock’s return is greater than or equal to 80% of its initial level, the payout at maturity will be par plus 16%. Otherwise, investors will lose 1% for every 1% that the stock declines from its initial price, payable either as 36.94 shares or in cash, at the issuer’s election.

RBC Capital Markets, LLC is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.

Issuer:	Royal Bank of Canada
Issue:	Contingent digital return barrier notes
Underlying stock:	Alibaba Group Holding Ltd.
Amount:	$2 million
Maturity:	Dec. 8, 2021
Coupon:	0%
Price:	Par of $10,000
Payout at maturity:	If the stock’s return is greater than or equal to barrier price, the payout at maturity will be par plus 16%; otherwise, investors will lose 1% for every 1% that the stock declines from its initial price, payable either in shares or cash
Initial share price:	$270.74
Barrier price:	$216.59, 80% of initial level
Physical delivery amount:	36.94 shares
Pricing date:	Nov. 23
Settlement date:	Nov. 27
Agent:	RBC Capital Markets, LLC
Placement agents:	JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
Fees:	1%
Cusip:	78013GZC2

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