New Issue: RBC prices $1.24 million buffered absolute return notes linked to regional banking ETF

By Angela McDaniels

Tacoma, Wash., March 6 – Royal Bank of Canada priced $1.24 million of 0% buffered absolute return notes due July 2, 2025 linked to the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.

If the final share price is greater than the initial share price, the payout at maturity will be par plus 200% of the ETF return, subject to a maximum return of 23%.

If the final share price is less than or equal to the initial share price but greater than or equal to the buffer price, 75% of the initial share price, the payout will be par plus the absolute value of the ETF return.

If the final share price is less than the buffer price, investors will lose 1% for every 1% that the ETF declines beyond 25%.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Buffered absolute return notes
Underlying ETF:	SPDR S&P Regional Banking ETF
Amount:	$1,237,000
Maturity:	July 2, 2025
Coupon:	0%
Price:	Par
Payout at maturity:	If final share price is greater than initial share price, par plus 200% of ETF return, subject to maximum return of 23%; if final share price is less than or equal to initial share price but greater than or equal to buffer price, par plus absolute value of ETF return; if final share price is less than buffer price, 1% loss for every 1% that ETF declines beyond 25%
Initial share price:	$40.76
Buffer price:	$30.57, or 75% of initial share price
Pricing date:	June 27, 2023
Settlement date:	June 30, 2023
Agent:	RBC Capital Markets, LLC
Fees:	2.25%
Cusip:	78016NEQ6

© 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.