RBC to price market-linked step-up notes on index basket

By Sarah Lizee

Olympia, Wash., Jan. 30 – Royal Bank of Canada plans to price 0% market-linked step-up notes due January 2024 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Dow Jones industrial average with a 50% weight, the Stoxx Global Select Dividend 100 index with a 30% weight and each of the Euro Stoxx 50 index and the FTSE 100 index with a 10% weight.

If the basket finishes at or above the step-up level – 140% to 146% of the initial level – the payout at maturity will be par of $10 plus the gain.

If the basket gains by up to the step-up level, the payout will be par plus the step-up payment of 40% to 46%.

Investors will be exposed to any losses.

BofA Securities, Inc. is the agent.

The notes will price in January.

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