[424B2] Royal Bank of Canada Prospectus Supplement

Q: What is the coupon rate on Royal Bank of Canada's Auto-Callable Contingent Coupon Barrier Notes (RY)?

The Notes pay a 12.00% per annum contingent coupon (1.00% monthly) when the Underlier closes at or above 70% of its initial level.

Q: How much principal protection do investors have at maturity?

Principal is fully repaid only if the index is at or above 70% of the initial level; below that, losses mirror the negative index return.

Q: What is the initial estimated value compared with the offer price?

RBC estimates a value of $907.50–$957.50 per $1,000 Note, below the 100% public offering price due to fees and hedging costs.

Q: Is there an exchange listing or guaranteed liquidity for these Notes?

No. The Notes will not be listed; any secondary trading depends solely on RBC affiliates and may involve wide bid-ask spreads.

Q: Are the Notes bail-inable under Canadian regulations?

No. The supplement states the Notes are not bail-inable under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.

Filing Impact

(Low)

Filing Sentiment

(Neutral)

Form Type

424B2

Rhea-AI Filing Summary

Royal Bank of Canada (RY) is marketing a new structured product: Auto-Callable Contingent Coupon Barrier Notes (“the Notes”) due August 5, 2030, linked to the Solactive Equal Weight U.S. Semiconductor Select AR Index. The preliminary pricing supplement outlines key commercial terms, mechanics, and risk factors investors must weigh before purchase.

Income profile: The Notes pay a contingent coupon of 1.00% per month (12.00% p.a.) when the Underlier closes at or above 70% of its initial level (the “Coupon Threshold”) on each monthly observation date. Coupons cease in any month the threshold is breached.
Auto-call feature: Starting roughly one year after issuance, the Notes are automatically redeemed at par plus the applicable coupon on any quarterly observation date when the Underlier closes at or above its initial level. Early redemption terminates future cash-flows.
Conditional principal protection: If the Notes are not called, principal is fully repaid at maturity only when the Underlier closes at or above 70% of its initial level (the “Barrier Value”). Otherwise, repayment is reduced by the exact negative Underlier return, exposing holders to losses up to 100%.
Economics to investors: Public offer price is 100% of face value, but RBC’s initial estimated value is expected to be $907.50–$957.50 per $1,000, reflecting dealer margin, hedging costs, and RBC’s internal funding rate. Underwriting discounts are 1.00% with potential selling concessions up to $10 and referral fees up to $16.25 per $1,000.
Underlying index specifics: The Solactive Equal Weight U.S. Semiconductor Select AR Index, launched November 16 2023, equally weights nine semiconductor equities and deducts a 2.0% p.a. adjustment fee, which drags performance relative to the underlying gross total return index.
Liquidity & credit: The Notes are senior unsecured obligations of RBC, unlisted, and subject to RBC’s credit risk. Secondary market making, if any, will be solely at the discretion of RBC Capital Markets and may include wide bid-ask spreads.
Key risks disclosed: potential loss of capital, non-payment of coupons, lack of upside participation, early call limiting income, illiquid secondary market, index’s limited track record, and uncertain U.S. tax treatment.

Overall, the instrument offers high conditional income and a 30% downside buffer, offset by significant principal risk, limited liquidity, and an estimated value materially below offer price.

Royal Bank of Canada (RY) presenta un nuovo prodotto strutturato: Auto-Callable Contingent Coupon Barrier Notes (“le Note”) con scadenza il 5 agosto 2030, legato all’indice Solactive Equal Weight U.S. Semiconductor Select AR. Il supplemento preliminare di pricing illustra i termini commerciali principali, il funzionamento e i fattori di rischio che gli investitori devono considerare prima dell’acquisto.

Profilo di reddito: Le Note pagano un coupon condizionato dell’1,00% mensile (12,00% annuo) se il sottostante chiude ad ogni data di osservazione mensile al 70% o più del livello iniziale (la “Soglia del Coupon”). I coupon cessano nei mesi in cui la soglia viene violata.
Caratteristica di auto-rimborso: A partire da circa un anno dopo l’emissione, le Note sono automaticamente rimborsate a valore nominale più il coupon applicabile in qualsiasi data di osservazione trimestrale in cui il sottostante chiude al livello iniziale o superiore. Il rimborso anticipato interrompe i flussi di cassa futuri.
Protezione condizionata del capitale: Se le Note non vengono richiamate, il capitale è rimborsato integralmente a scadenza solo se il sottostante chiude al 70% o più del livello iniziale (il “Valore Barriera”). Altrimenti il rimborso è ridotto della perdita esatta del sottostante, esponendo gli investitori a perdite fino al 100%.
Economia per gli investitori: Il prezzo di offerta pubblica è il 100% del valore nominale, ma il valore stimato iniziale di RBC è atteso tra 907,50 e 957,50 dollari per ogni 1.000, riflettendo margini del dealer, costi di copertura e il tasso di finanziamento interno di RBC. Sconti di sottoscrizione sono dell’1,00% con potenziali commissioni di vendita fino a 10 dollari e fee di referral fino a 16,25 dollari per ogni 1.000.
Dettagli sull’indice sottostante: L’indice Solactive Equal Weight U.S. Semiconductor Select AR, lanciato il 16 novembre 2023, pondera equamente nove azioni del settore semiconduttori e applica una commissione di aggiustamento del 2,0% annuo, che impatta negativamente la performance rispetto all’indice totale lordo sottostante.
Liquidità e rischio di credito: Le Note sono obbligazioni senior non garantite di RBC, non quotate e soggette al rischio di credito di RBC. Il mercato secondario, se presente, sarà a discrezione di RBC Capital Markets e potrà presentare spread bid-ask ampi.
Principali rischi indicati: possibile perdita del capitale, mancato pagamento dei coupon, assenza di partecipazione al rialzo, richiamo anticipato che limita i guadagni, mercato secondario poco liquido, storia limitata dell’indice e trattamento fiscale USA incerto.

In sintesi, lo strumento offre un elevato reddito condizionato e una protezione al ribasso del 30%, bilanciati da un significativo rischio sul capitale, liquidità limitata e un valore stimato sensibilmente inferiore al prezzo di offerta.

Royal Bank of Canada (RY) está comercializando un nuevo producto estructurado: Auto-Callable Contingent Coupon Barrier Notes (“las Notas”) con vencimiento el 5 de agosto de 2030, vinculado al índice Solactive Equal Weight U.S. Semiconductor Select AR. El suplemento preliminar de precios detalla los términos comerciales clave, el funcionamiento y los factores de riesgo que los inversores deben considerar antes de la compra.

Perfil de ingresos: Las Notas pagan un cupón contingente del 1,00% mensual (12,00% anual) cuando el subyacente cierra en o por encima del 70% de su nivel inicial (el “Umbral del Cupón”) en cada fecha de observación mensual. Los cupones cesan en cualquier mes en que se incumpla este umbral.
Función de auto-reembolso: Aproximadamente un año después de la emisión, las Notas se reembolsan automáticamente a la par más el cupón aplicable en cualquier fecha de observación trimestral en que el subyacente cierre en o por encima de su nivel inicial. El reembolso anticipado termina los flujos de caja futuros.
Protección condicional del principal: Si las Notas no son llamadas, el principal se reembolsa completamente al vencimiento solo si el subyacente cierra en o por encima del 70% de su nivel inicial (el “Valor de Barrera”). De lo contrario, el reembolso se reduce por la pérdida exacta del subyacente, exponiendo a los tenedores a pérdidas de hasta el 100%.
Economía para los inversores: El precio de oferta pública es el 100% del valor nominal, pero el valor estimado inicial de RBC se espera entre $907.50 y $957.50 por cada $1,000, reflejando el margen del distribuidor, costos de cobertura y la tasa interna de financiamiento de RBC. Los descuentos de suscripción son del 1,00% con posibles concesiones de venta de hasta $10 y comisiones por referencia de hasta $16.25 por cada $1,000.
Detalles del índice subyacente: El índice Solactive Equal Weight U.S. Semiconductor Select AR, lanzado el 16 de noviembre de 2023, pondera por igual nueve acciones del sector de semiconductores y deduce una tarifa de ajuste del 2,0% anual, lo que afecta negativamente el rendimiento en comparación con el índice bruto total subyacente.
Liquidez y crédito: Las Notas son obligaciones senior no garantizadas de RBC, no cotizadas y sujetas al riesgo crediticio de RBC. La creación de mercado secundaria, si la hay, estará exclusivamente a discreción de RBC Capital Markets y podrá incluir spreads de compra-venta amplios.
Riesgos clave divulgados: posible pérdida de capital, impago de cupones, falta de participación en la subida, llamada anticipada que limita ingresos, mercado secundario ilíquido, historial limitado del índice y tratamiento fiscal estadounidense incierto.

En resumen, el instrumento ofrece un alto ingreso condicional y un colchón a la baja del 30%, compensado por un riesgo significativo sobre el principal, liquidez limitada y un valor estimado sustancialmente inferior al precio de oferta.

로열 뱅크 오브 캐나다(RY)가 새로운 구조화 상품인 Auto-Callable Contingent Coupon Barrier Notes(“노트”)를 출시합니다. 만기일은 2030년 8월 5일이며, Solactive Equal Weight U.S. Semiconductor Select AR 지수에 연동됩니다. 예비 가격 보충 문서에는 주요 상업 조건, 구조 및 투자자가 구매 전에 고려해야 할 위험 요소가 요약되어 있습니다.

수익 프로필: 노트는 기초자산이 초기 수준의 70% 이상(“쿠폰 임계값”)으로 월별 관찰일에 마감할 경우 월 1.00%(연 12.00%)의 조건부 쿠폰을 지급합니다. 임계값이 하락한 달에는 쿠폰 지급이 중단됩니다.
자동 상환 기능: 발행 약 1년 후부터, 기초자산이 초기 수준 이상으로 분기별 관찰일에 마감할 경우 노트는 액면가와 해당 쿠폰을 포함하여 자동 상환됩니다. 조기 상환 시 이후 현금 흐름은 종료됩니다.
조건부 원금 보호: 노트가 상환되지 않은 경우, 만기 시 기초자산이 초기 수준의 70% 이상(“장벽 가치”)으로 마감할 때만 원금이 전액 상환됩니다. 그렇지 않으면 기초자산의 정확한 손실만큼 상환액이 줄어들어 최대 100% 손실 위험이 있습니다.
투자자 경제성: 공개 판매 가격은 액면가의 100%이나, RBC의 초기 추정 가치는 $1,000당 $907.50~$957.50로, 딜러 마진, 헤지 비용 및 내부 자금 조달 금리가 반영된 수치입니다. 인수 할인율은 1.00%이며, 최대 $10의 판매 수수료와 $16.25의 추천 수수료가 발생할 수 있습니다.
기초 지수 세부사항: 2023년 11월 16일 출시된 Solactive Equal Weight U.S. Semiconductor Select AR 지수는 9개 반도체 주식을 동일 가중치로 편입하며 연 2.0% 조정 수수료를 차감해, 기초 총수익 지수 대비 성과가 저하됩니다.
유동성 및 신용: 노트는 RBC의 선순위 무담보 채무로 비상장 상품이며 RBC의 신용 위험에 노출됩니다. 2차 시장 조성은 RBC 캐피탈 마켓의 재량에 따르며, 매수-매도 스프레드가 클 수 있습니다.
주요 위험 공시: 자본 손실 가능성, 쿠폰 미지급, 상승 참여 제한, 조기 상환으로 인한 수익 제한, 비유동적 2차 시장, 지수의 짧은 이력, 미국 세금 처리 불확실성 등이 포함됩니다.

종합적으로 이 상품은 높은 조건부 수익과 30% 하락 보호를 제공하지만, 상당한 원금 위험, 제한된 유동성, 그리고 제시 가격보다 크게 낮은 추정 가치가 상쇄됩니다.

La Royal Bank of Canada (RY) commercialise un nouveau produit structuré : Auto-Callable Contingent Coupon Barrier Notes (« les Notes ») arrivant à échéance le 5 août 2030, lié à l’indice Solactive Equal Weight U.S. Semiconductor Select AR. Le supplément préliminaire de tarification décrit les principaux termes commerciaux, le fonctionnement et les facteurs de risque que les investisseurs doivent prendre en compte avant l’achat.

Profil de revenu : Les Notes versent un coupon conditionnel de 1,00 % par mois (12,00 % par an) lorsque le sous-jacent clôture à au moins 70 % de son niveau initial (le « seuil du coupon ») à chaque date d’observation mensuelle. Les coupons cessent tout mois où ce seuil est franchi à la baisse.
Caractéristique d’auto-remboursement : Environ un an après l’émission, les Notes sont automatiquement remboursées à leur valeur nominale plus le coupon applicable à toute date d’observation trimestrielle où le sous-jacent clôture à son niveau initial ou au-dessus. Un remboursement anticipé met fin aux flux de trésorerie futurs.
Protection conditionnelle du capital : Si les Notes ne sont pas rappelées, le capital est intégralement remboursé à l’échéance uniquement si le sous-jacent clôture à au moins 70 % de son niveau initial (la « valeur barrière »). Sinon, le remboursement est réduit du rendement négatif exact du sous-jacent, exposant les détenteurs à des pertes pouvant atteindre 100 %.
Aspects économiques pour les investisseurs : Le prix d’offre publique est de 100 % de la valeur nominale, mais la valeur estimée initiale par RBC devrait se situer entre 907,50 et 957,50 $ pour 1 000 $, reflétant la marge du distributeur, les coûts de couverture et le taux de financement interne de RBC. Les décotes de souscription sont de 1,00 % avec des concessions de vente potentielles allant jusqu’à 10 $ et des frais de recommandation pouvant atteindre 16,25 $ pour 1 000 $.
Détails sur l’indice sous-jacent : L’indice Solactive Equal Weight U.S. Semiconductor Select AR, lancé le 16 novembre 2023, pondère également neuf actions du secteur des semi-conducteurs et déduit une commission d’ajustement de 2,0 % par an, ce qui pénalise la performance par rapport à l’indice brut sous-jacent.
Liquidité et crédit : Les Notes sont des obligations senior non garanties de RBC, non cotées et soumises au risque de crédit de RBC. La tenue de marché secondaire, le cas échéant, sera à la seule discrétion de RBC Capital Markets et pourra présenter des écarts acheteur-vendeur importants.
Principaux risques divulgués : risque de perte de capital, non-paiement des coupons, absence de participation à la hausse, rappel anticipé limitant les revenus, marché secondaire peu liquide, historique limité de l’indice et traitement fiscal américain incertain.

Dans l’ensemble, cet instrument offre un revenu conditionnel élevé et une protection à la baisse de 30 %, compensés par un risque significatif sur le capital, une liquidité limitée et une valeur estimée nettement inférieure au prix d’offre.

Die Royal Bank of Canada (RY) bietet ein neues strukturiertes Produkt an: Auto-Callable Contingent Coupon Barrier Notes („die Notes“) mit Fälligkeit am 5. August 2030, gekoppelt an den Solactive Equal Weight U.S. Semiconductor Select AR Index. Das vorläufige Preiszusatzblatt beschreibt die wichtigsten kommerziellen Bedingungen, Funktionsweisen und Risikofaktoren, die Investoren vor dem Kauf abwägen müssen.

Einkommensprofil: Die Notes zahlen einen bedingten Coupon von 1,00 % pro Monat (12,00 % p.a.), wenn der Basiswert an jedem monatlichen Beobachtungstag bei mindestens 70 % seines Anfangswerts (die „Coupon-Schwelle“) schließt. Die Coupons entfallen in jedem Monat, in dem die Schwelle unterschritten wird.
Auto-Call-Funktion: Ab etwa einem Jahr nach Emission werden die Notes automatisch zum Nennwert plus dem entsprechenden Coupon an jedem vierteljährlichen Beobachtungstag zurückgezahlt, an dem der Basiswert auf oder über seinem Anfangsniveau schließt. Eine vorzeitige Rückzahlung beendet zukünftige Zahlungsströme.
Bedingter Kapitalschutz: Wenn die Notes nicht zurückgerufen werden, wird das Kapital bei Fälligkeit nur dann vollständig zurückgezahlt, wenn der Basiswert bei mindestens 70 % seines Anfangsniveaus (der „Barrierewert“) schließt. Andernfalls wird die Rückzahlung um die exakte negative Rendite des Basiswerts reduziert, wodurch Anleger Verluste von bis zu 100 % erleiden können.
Wirtschaftlichkeit für Investoren: Der öffentliche Angebotspreis beträgt 100 % des Nennwerts, aber der von RBC geschätzte Anfangswert wird voraussichtlich zwischen 907,50 und 957,50 USD pro 1.000 USD liegen, was die Händler-Marge, Absicherungskosten und die interne Finanzierungskostenrate von RBC widerspiegelt. Zeichnungsrabatte betragen 1,00 % mit möglichen Verkaufskonditionen von bis zu 10 USD und Empfehlungsgebühren von bis zu 16,25 USD pro 1.000 USD.
Details zum zugrunde liegenden Index: Der Solactive Equal Weight U.S. Semiconductor Select AR Index, eingeführt am 16. November 2023, gewichtet neun Halbleiteraktien gleich und zieht eine Anpassungsgebühr von 2,0 % p.a. ab, was die Performance im Vergleich zum zugrunde liegenden Bruttorenditeindex belastet.
Liquidität & Kredit: Die Notes sind unbesicherte Seniorverbindlichkeiten von RBC, nicht börsennotiert und dem Kreditrisiko von RBC ausgesetzt. Der Sekundärmarkt, falls vorhanden, wird ausschließlich nach Ermessen von RBC Capital Markets betrieben und kann breite Geld-Brief-Spannen aufweisen.
Wesentliche offengelegte Risiken: potenzieller Kapitalverlust, Nichtzahlung von Coupons, fehlende Aufwärtsbeteiligung, vorzeitiger Rückruf, der die Einkünfte begrenzt, illiquider Sekundärmarkt, begrenzte Historie des Index und unklare US-Steuerbehandlung.

Insgesamt bietet das Instrument eine hohe bedingte Rendite und einen 30 % Abwärtspuffer, ausgeglichen durch erhebliches Kapitalrisiko, eingeschränkte Liquidität und einen geschätzten Wert, der deutlich unter dem Angebotspreis liegt.

Positive

12.00% annual contingent coupon provides elevated income relative to traditional fixed-income instruments when the Underlier stays above the 70% threshold.
30% downside buffer via the barrier and coupon threshold offers conditional principal protection if the index does not fall more than 30%.
Quarterly auto-call at par plus coupon may shorten duration and enhance realized yield if the Underlier performs well.

Negative

Full downside participation below the 70% barrier can lead to 100% principal loss at maturity.
No upside participation; returns are capped at coupon payments even if the index rallies strongly.
Initial estimated value (≈ $907.50–$957.50) is up to 9.25% below issue price, indicating embedded costs to investors.
Notes are unlisted and may lack liquidity, forcing holders to accept deep discounts in secondary sales.
Underlying index launched in 2023; limited track record and a 2.0% annual fee reduce performance.
All payments subject to RBC credit risk; adverse changes in perceived credit quality can erode market value.

Insights

TL;DR: High 12% coupon and 30% buffer attract yield seekers, but downside and valuation discount warrant caution.

The Notes provide an appealing headline yield and a clearly defined auto-call framework. A 70% barrier offers moderate protection, yet investors forgo any upside beyond coupons. The internal valuation gap of up to 9.25% versus offer price highlights embedded fees and hedging costs, placing buyers at an immediate mark-to-market disadvantage. Product suitability is largely confined to investors comfortable with semiconductor sector concentration, RBC credit exposure, and potential illiquidity through 2030.

TL;DR: Principal loss below 70% barrier, unlisted status, and young index materially raise risk profile.

Holders face full downside exposure beneath the 70% barrier and no statutory deposit insurance. The Solactive index was launched in late 2023, so real-world stress performance is untested; back-tests are not guarantees. The 2.0% annual adjustment factor further suppresses index returns, increasing the chance coupons halt and capital is eroded. With no exchange listing, exit liquidity relies on RBC’s discretionary market making, likely at significant discounts. Credit deterioration at RBC or semiconductor industry shocks could sharply depress secondary prices.

Profilo di reddito: Le Note pagano un coupon condizionato dell’1,00% mensile (12,00% annuo) se il sottostante chiude ad ogni data di osservazione mensile al 70% o più del livello iniziale (la “Soglia del Coupon”). I coupon cessano nei mesi in cui la soglia viene violata.
Caratteristica di auto-rimborso: A partire da circa un anno dopo l’emissione, le Note sono automaticamente rimborsate a valore nominale più il coupon applicabile in qualsiasi data di osservazione trimestrale in cui il sottostante chiude al livello iniziale o superiore. Il rimborso anticipato interrompe i flussi di cassa futuri.
Protezione condizionata del capitale: Se le Note non vengono richiamate, il capitale è rimborsato integralmente a scadenza solo se il sottostante chiude al 70% o più del livello iniziale (il “Valore Barriera”). Altrimenti il rimborso è ridotto della perdita esatta del sottostante, esponendo gli investitori a perdite fino al 100%.
Economia per gli investitori: Il prezzo di offerta pubblica è il 100% del valore nominale, ma il valore stimato iniziale di RBC è atteso tra 907,50 e 957,50 dollari per ogni 1.000, riflettendo margini del dealer, costi di copertura e il tasso di finanziamento interno di RBC. Sconti di sottoscrizione sono dell’1,00% con potenziali commissioni di vendita fino a 10 dollari e fee di referral fino a 16,25 dollari per ogni 1.000.
Dettagli sull’indice sottostante: L’indice Solactive Equal Weight U.S. Semiconductor Select AR, lanciato il 16 novembre 2023, pondera equamente nove azioni del settore semiconduttori e applica una commissione di aggiustamento del 2,0% annuo, che impatta negativamente la performance rispetto all’indice totale lordo sottostante.
Liquidità e rischio di credito: Le Note sono obbligazioni senior non garantite di RBC, non quotate e soggette al rischio di credito di RBC. Il mercato secondario, se presente, sarà a discrezione di RBC Capital Markets e potrà presentare spread bid-ask ampi.
Principali rischi indicati: possibile perdita del capitale, mancato pagamento dei coupon, assenza di partecipazione al rialzo, richiamo anticipato che limita i guadagni, mercato secondario poco liquido, storia limitata dell’indice e trattamento fiscale USA incerto.

Perfil de ingresos: Las Notas pagan un cupón contingente del 1,00% mensual (12,00% anual) cuando el subyacente cierra en o por encima del 70% de su nivel inicial (el “Umbral del Cupón”) en cada fecha de observación mensual. Los cupones cesan en cualquier mes en que se incumpla este umbral.
Función de auto-reembolso: Aproximadamente un año después de la emisión, las Notas se reembolsan automáticamente a la par más el cupón aplicable en cualquier fecha de observación trimestral en que el subyacente cierre en o por encima de su nivel inicial. El reembolso anticipado termina los flujos de caja futuros.
Protección condicional del principal: Si las Notas no son llamadas, el principal se reembolsa completamente al vencimiento solo si el subyacente cierra en o por encima del 70% de su nivel inicial (el “Valor de Barrera”). De lo contrario, el reembolso se reduce por la pérdida exacta del subyacente, exponiendo a los tenedores a pérdidas de hasta el 100%.
Economía para los inversores: El precio de oferta pública es el 100% del valor nominal, pero el valor estimado inicial de RBC se espera entre $907.50 y $957.50 por cada $1,000, reflejando el margen del distribuidor, costos de cobertura y la tasa interna de financiamiento de RBC. Los descuentos de suscripción son del 1,00% con posibles concesiones de venta de hasta $10 y comisiones por referencia de hasta $16.25 por cada $1,000.
Detalles del índice subyacente: El índice Solactive Equal Weight U.S. Semiconductor Select AR, lanzado el 16 de noviembre de 2023, pondera por igual nueve acciones del sector de semiconductores y deduce una tarifa de ajuste del 2,0% anual, lo que afecta negativamente el rendimiento en comparación con el índice bruto total subyacente.
Liquidez y crédito: Las Notas son obligaciones senior no garantizadas de RBC, no cotizadas y sujetas al riesgo crediticio de RBC. La creación de mercado secundaria, si la hay, estará exclusivamente a discreción de RBC Capital Markets y podrá incluir spreads de compra-venta amplios.
Riesgos clave divulgados: posible pérdida de capital, impago de cupones, falta de participación en la subida, llamada anticipada que limita ingresos, mercado secundario ilíquido, historial limitado del índice y tratamiento fiscal estadounidense incierto.

수익 프로필: 노트는 기초자산이 초기 수준의 70% 이상(“쿠폰 임계값”)으로 월별 관찰일에 마감할 경우 월 1.00%(연 12.00%)의 조건부 쿠폰을 지급합니다. 임계값이 하락한 달에는 쿠폰 지급이 중단됩니다.
자동 상환 기능: 발행 약 1년 후부터, 기초자산이 초기 수준 이상으로 분기별 관찰일에 마감할 경우 노트는 액면가와 해당 쿠폰을 포함하여 자동 상환됩니다. 조기 상환 시 이후 현금 흐름은 종료됩니다.
조건부 원금 보호: 노트가 상환되지 않은 경우, 만기 시 기초자산이 초기 수준의 70% 이상(“장벽 가치”)으로 마감할 때만 원금이 전액 상환됩니다. 그렇지 않으면 기초자산의 정확한 손실만큼 상환액이 줄어들어 최대 100% 손실 위험이 있습니다.
투자자 경제성: 공개 판매 가격은 액면가의 100%이나, RBC의 초기 추정 가치는 $1,000당 $907.50~$957.50로, 딜러 마진, 헤지 비용 및 내부 자금 조달 금리가 반영된 수치입니다. 인수 할인율은 1.00%이며, 최대 $10의 판매 수수료와 $16.25의 추천 수수료가 발생할 수 있습니다.
기초 지수 세부사항: 2023년 11월 16일 출시된 Solactive Equal Weight U.S. Semiconductor Select AR 지수는 9개 반도체 주식을 동일 가중치로 편입하며 연 2.0% 조정 수수료를 차감해, 기초 총수익 지수 대비 성과가 저하됩니다.
유동성 및 신용: 노트는 RBC의 선순위 무담보 채무로 비상장 상품이며 RBC의 신용 위험에 노출됩니다. 2차 시장 조성은 RBC 캐피탈 마켓의 재량에 따르며, 매수-매도 스프레드가 클 수 있습니다.
주요 위험 공시: 자본 손실 가능성, 쿠폰 미지급, 상승 참여 제한, 조기 상환으로 인한 수익 제한, 비유동적 2차 시장, 지수의 짧은 이력, 미국 세금 처리 불확실성 등이 포함됩니다.

Profil de revenu : Les Notes versent un coupon conditionnel de 1,00 % par mois (12,00 % par an) lorsque le sous-jacent clôture à au moins 70 % de son niveau initial (le « seuil du coupon ») à chaque date d’observation mensuelle. Les coupons cessent tout mois où ce seuil est franchi à la baisse.
Caractéristique d’auto-remboursement : Environ un an après l’émission, les Notes sont automatiquement remboursées à leur valeur nominale plus le coupon applicable à toute date d’observation trimestrielle où le sous-jacent clôture à son niveau initial ou au-dessus. Un remboursement anticipé met fin aux flux de trésorerie futurs.
Protection conditionnelle du capital : Si les Notes ne sont pas rappelées, le capital est intégralement remboursé à l’échéance uniquement si le sous-jacent clôture à au moins 70 % de son niveau initial (la « valeur barrière »). Sinon, le remboursement est réduit du rendement négatif exact du sous-jacent, exposant les détenteurs à des pertes pouvant atteindre 100 %.
Aspects économiques pour les investisseurs : Le prix d’offre publique est de 100 % de la valeur nominale, mais la valeur estimée initiale par RBC devrait se situer entre 907,50 et 957,50 $ pour 1 000 $, reflétant la marge du distributeur, les coûts de couverture et le taux de financement interne de RBC. Les décotes de souscription sont de 1,00 % avec des concessions de vente potentielles allant jusqu’à 10 $ et des frais de recommandation pouvant atteindre 16,25 $ pour 1 000 $.
Détails sur l’indice sous-jacent : L’indice Solactive Equal Weight U.S. Semiconductor Select AR, lancé le 16 novembre 2023, pondère également neuf actions du secteur des semi-conducteurs et déduit une commission d’ajustement de 2,0 % par an, ce qui pénalise la performance par rapport à l’indice brut sous-jacent.
Liquidité et crédit : Les Notes sont des obligations senior non garanties de RBC, non cotées et soumises au risque de crédit de RBC. La tenue de marché secondaire, le cas échéant, sera à la seule discrétion de RBC Capital Markets et pourra présenter des écarts acheteur-vendeur importants.
Principaux risques divulgués : risque de perte de capital, non-paiement des coupons, absence de participation à la hausse, rappel anticipé limitant les revenus, marché secondaire peu liquide, historique limité de l’indice et traitement fiscal américain incertain.

Einkommensprofil: Die Notes zahlen einen bedingten Coupon von 1,00 % pro Monat (12,00 % p.a.), wenn der Basiswert an jedem monatlichen Beobachtungstag bei mindestens 70 % seines Anfangswerts (die „Coupon-Schwelle“) schließt. Die Coupons entfallen in jedem Monat, in dem die Schwelle unterschritten wird.
Auto-Call-Funktion: Ab etwa einem Jahr nach Emission werden die Notes automatisch zum Nennwert plus dem entsprechenden Coupon an jedem vierteljährlichen Beobachtungstag zurückgezahlt, an dem der Basiswert auf oder über seinem Anfangsniveau schließt. Eine vorzeitige Rückzahlung beendet zukünftige Zahlungsströme.
Bedingter Kapitalschutz: Wenn die Notes nicht zurückgerufen werden, wird das Kapital bei Fälligkeit nur dann vollständig zurückgezahlt, wenn der Basiswert bei mindestens 70 % seines Anfangsniveaus (der „Barrierewert“) schließt. Andernfalls wird die Rückzahlung um die exakte negative Rendite des Basiswerts reduziert, wodurch Anleger Verluste von bis zu 100 % erleiden können.
Wirtschaftlichkeit für Investoren: Der öffentliche Angebotspreis beträgt 100 % des Nennwerts, aber der von RBC geschätzte Anfangswert wird voraussichtlich zwischen 907,50 und 957,50 USD pro 1.000 USD liegen, was die Händler-Marge, Absicherungskosten und die interne Finanzierungskostenrate von RBC widerspiegelt. Zeichnungsrabatte betragen 1,00 % mit möglichen Verkaufskonditionen von bis zu 10 USD und Empfehlungsgebühren von bis zu 16,25 USD pro 1.000 USD.
Details zum zugrunde liegenden Index: Der Solactive Equal Weight U.S. Semiconductor Select AR Index, eingeführt am 16. November 2023, gewichtet neun Halbleiteraktien gleich und zieht eine Anpassungsgebühr von 2,0 % p.a. ab, was die Performance im Vergleich zum zugrunde liegenden Bruttorenditeindex belastet.
Liquidität & Kredit: Die Notes sind unbesicherte Seniorverbindlichkeiten von RBC, nicht börsennotiert und dem Kreditrisiko von RBC ausgesetzt. Der Sekundärmarkt, falls vorhanden, wird ausschließlich nach Ermessen von RBC Capital Markets betrieben und kann breite Geld-Brief-Spannen aufweisen.
Wesentliche offengelegte Risiken: potenzieller Kapitalverlust, Nichtzahlung von Coupons, fehlende Aufwärtsbeteiligung, vorzeitiger Rückruf, der die Einkünfte begrenzt, illiquider Sekundärmarkt, begrenzte Historie des Index und unklare US-Steuerbehandlung.

06/30/2025 - 03:53 PM

		Registration Statement No. 333-275898 Filed Pursuant to Rule 424(b)(2)
The information in this preliminary pricing supplement is not complete and may be changed.

Preliminary Pricing Supplement Subject to Completion: Dated June 30, 2025 Pricing Supplement dated July __, 2025 to the Prospectus dated December 20, 2023, the Prospectus Supplement dated December 20, 2023, the Index Supplement SOL-1 dated June 6, 2024 and the Product Supplement No. 1A dated May 16, 2024		$ Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index, Due August 5, 2030 Royal Bank of Canada

Royal Bank of Canada is offering Auto-Callable Contingent Coupon Barrier Notes (the “Notes”) linked to the performance of the Solactive Equal Weight U.S. Semi Conductor Select AR Index (the “Underlier”).

Contingent Coupons — If the Notes have not been automatically called, investors will receive a Contingent Coupon on a monthly Coupon Payment Date at a rate of 12.00% per annum if the closing value of the Underlier is greater than or equal to the Coupon Threshold (70% of the Initial Underlier Value) on the immediately preceding Coupon Observation Date. You may not receive any Contingent Coupons during the term of the Notes.

Call Feature — If, on any quarterly Call Observation Date beginning approximately one year following the Trade Date, the closing value of the Underlier is greater than or equal to the Initial Underlier Value, the Notes will be automatically called for 100% of their principal amount plus the Contingent Coupon otherwise due. No further payments will be made on the Notes.

Contingent Return of Principal at Maturity — If the Notes are not automatically called and the Final Underlier Value is greater than or equal to the Barrier Value (70% of the Initial Underlier Value), at maturity, investors will receive the principal amount of their Notes plus the Contingent Coupon otherwise due. If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, at maturity, investors will lose 1% of the principal amount of their Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value.

Any payments on the Notes are subject to our credit risk.

The Notes will not be listed on any securities exchange.

CUSIP: 78017PDF5

Investing in the Notes involves a number of risks. See “Selected Risk Considerations” beginning on page P-8 of this pricing supplement and “Risk Factors” in the accompanying prospectus, prospectus supplement, index supplement and product supplement.

None of the Securities and Exchange Commission (the “SEC”), any state securities commission or any other regulatory body has approved or disapproved of the Notes or passed upon the adequacy or accuracy of this pricing supplement. Any representation to the contrary is a criminal offense. The Notes will not constitute deposits insured by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance Corporation or any other Canadian or U.S. governmental agency or instrumentality. The Notes are not bail-inable notes and are not subject to conversion into our common shares under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.

	Per Note	Total
Price to public⁽¹⁾	100.00%	$
Underwriting discounts and commissions⁽¹⁾	1.00%	$
Proceeds to Royal Bank of Canada	99.00%	$

⁽¹⁾ We or one of our affiliates may pay varying selling concessions of up to $10.00 per $1,000 principal amount of Notes in connection with the distribution of the Notes to other registered broker-dealers. Certain dealers who purchase the Notes for sale to certain fee-based advisory accounts may forgo some or all of their underwriting discount or selling concessions. The public offering price for investors purchasing the Notes in these accounts may be between $990.00 and $1,000.00 per $1,000 principal amount of Notes. In addition, we or one of our affiliates may pay a broker-dealer that is not affiliated with us a referral fee of up to $16.25 per $1,000 principal amount of Notes. See “Supplemental Plan of Distribution (Conflicts of Interest)” below.

The initial estimated value of the Notes determined by us as of the Trade Date, which we refer to as the initial estimated value, is expected to be between $907.50 and $957.50 per $1,000 principal amount of Notes and will be less than the public offering price of the Notes. The final pricing supplement relating to the Notes will set forth the initial estimated value. The market value of the Notes at any time will reflect many factors, cannot be predicted with accuracy and may be less than this amount. We describe the determination of the initial estimated value in more detail below.

RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

KEY TERMS

The information in this “Key Terms” section is qualified by any more detailed information set forth in this pricing supplement and in the accompanying prospectus, prospectus supplement, index supplement and product supplement.

Issuer:	Royal Bank of Canada
Underwriter:	RBC Capital Markets, LLC (“RBCCM”)
Minimum Investment:	$1,000 and minimum denominations of $1,000 in excess thereof
Underlier:	The Solactive Equal Weight U.S. Semi Conductor Select AR Index. The Underlier reflects the deduction of an adjustment factor of 2.0% per annum (the “Adjustment Factor”), calculated daily and deducted on each index calculation day.
	Bloomberg Ticker	Initial Underlier Value⁽¹⁾	Coupon Threshold and Barrier Value⁽²⁾
	SOUSESCA
	⁽¹⁾ The closing value of the Underlier on the Trade Date
	⁽²⁾ 70% of the Initial Underlier Value (rounded to two decimal places)
Trade Date:	July 31, 2025
Issue Date:	August 5, 2025
Valuation Date:*	July 31, 2030
Maturity Date:*	August 5, 2030
Payment of Contingent Coupons:	If the Notes have not been automatically called, investors will receive a Contingent Coupon on a Coupon Payment Date if the closing value of the Underlier is *greater than or equal to* the Coupon Threshold on the immediately preceding Coupon Observation Date. No Contingent Coupon will be payable on a Coupon Payment Date if the closing value of the Underlier is less than the Coupon Threshold on the immediately preceding Coupon Observation Date. Accordingly, you may not receive a Contingent Coupon on one or more Coupon Payment Dates during the term of the Notes.
Contingent Coupon:	If payable, $10.00 per $1,000 principal amount of Notes (corresponding to a rate of 1.00% per month or 12.00% per annum)
Call Feature:	If, on any Call Observation Date, the closing value of the Underlier is *greater than or equal to* the Initial Underlier Value, the Notes will be automatically called. Under these circumstances, investors will receive on the Call Settlement Date per $1,000 principal amount of Notes an amount equal to $1,000 plus the Contingent Coupon otherwise due. No further payments will be made on the Notes.
Payment at Maturity:	If the Notes are not automatically called, investors will receive on the Maturity Date per $1,000 principal amount of Notes, in addition to any Contingent Coupon otherwise due: · If the Final Underlier Value is *greater than or equal to* the Barrier Value: $1,000 · If the Final Underlier Value is *less than* the Barrier Value, an amount equal to: $1,000 + ($1,000 × Underlier Return) If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, you will lose a substantial portion or all of your principal amount at maturity. All payments on the Notes are subject to our credit risk.

P-2	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

Underlier Return:	The Underlier Return, expressed as a percentage, is calculated using the following formula: Final Underlier Value – Initial Underlier Value Initial Underlier Value
Final Underlier Value:	The closing value of the Underlier on the Valuation Date
Coupon Observation Dates:*	Monthly, as set forth in the table below
Coupon Payment Dates:*	Monthly, as set forth in the table below
Call Observation Dates:*	Quarterly, beginning approximately one year following the Trade Date, on each Coupon Observation Date designated as a Call Observation Date in the table below
Call Settlement Date:*	If the Notes are automatically called on any Call Observation Date, the Coupon Payment Date immediately following that Call Observation Date
Calculation Agent:	RBCCM

Coupon Observation Dates*	Coupon Payment Dates*
August 29, 2025	September 4, 2025
September 30, 2025	October 3, 2025
October 31, 2025	November 5, 2025
November 28, 2025	December 3, 2025
December 31, 2025	January 6, 2026
January 30, 2026	February 4, 2026
February 27, 2026	March 4, 2026
March 31, 2026	April 6, 2026
April 30, 2026	May 5, 2026
May 29, 2026	June 3, 2026
June 30, 2026	July 6, 2026
July 31, 2026**	August 5, 2026
August 31, 2026	September 3, 2026
September 30, 2026	October 5, 2026
October 30, 2026**	November 4, 2026
November 30, 2026	December 3, 2026
December 31, 2026	January 6, 2027
January 29, 2027**	February 3, 2027
February 26, 2027	March 3, 2027
March 31, 2027	April 5, 2027
April 30, 2027**	May 5, 2027
May 28, 2027	June 3, 2027
June 30, 2027	July 6, 2027
July 30, 2027**	August 4, 2027
August 31, 2027	September 3, 2027
September 30, 2027	October 5, 2027
October 29, 2027**	November 3, 2027
November 30, 2027	December 3, 2027
December 31, 2027	January 5, 2028

P-3	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

Coupon Observation Dates*	Coupon Payment Dates*
January 31, 2028**	February 3, 2028
February 29, 2028	March 3, 2028
March 31, 2028	April 5, 2028
April 28, 2028**	May 3, 2028
May 31, 2028	June 5, 2028
June 30, 2028	July 6, 2028
July 31, 2028**	August 3, 2028
August 31, 2028	September 6, 2028
September 29, 2028	October 4, 2028
October 31, 2028**	November 3, 2028
November 30, 2028	December 5, 2028
December 29, 2028	January 4, 2029
January 31, 2029**	February 5, 2029
February 28, 2029	March 5, 2029
March 29, 2029	April 4, 2029
April 30, 2029**	May 3, 2029
May 31, 2029	June 5, 2029
June 29, 2029	July 5, 2029
July 31, 2029**	August 3, 2029
August 31, 2029	September 6, 2029
September 28, 2029	October 3, 2029
October 31, 2029**	November 5, 2029
November 30, 2029	December 5, 2029
December 31, 2029	January 4, 2030
January 31, 2030**	February 5, 2030
February 28, 2030	March 5, 2030
March 29, 2030	April 3, 2030
April 30, 2030**	May 3, 2030
May 31, 2030	June 5, 2030
June 28, 2030	July 3, 2030
July 31, 2030 (the Valuation Date)	August 5, 2030 (the Maturity Date)

* Subject to postponement. See “General Terms of the Notes—Postponement of a Determination Date” and “General Terms of the Notes—Postponement of a Payment Date” in the accompanying product supplement.

** This date is also a Call Observation Date.

P-4	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

ADDITIONAL TERMS OF YOUR NOTES

You should read this pricing supplement together with the prospectus dated December 20, 2023, as supplemented by the prospectus supplement dated December 20, 2023, relating to our Senior Global Medium-Term Notes, Series J, of which the Notes are a part, the index supplement SOL-1 dated June 6, 2024 and the product supplement no. 1A dated May 16, 2024. This pricing supplement, together with these documents, contains the terms of the Notes and supersedes all other prior or contemporaneous oral statements as well as any other written materials, including preliminary or indicative pricing terms, correspondence, trade ideas, structures for implementation, sample structures, fact sheets, brochures or other educational materials of ours.

We have not authorized anyone to provide any information or to make any representations other than those contained or incorporated by reference in this pricing supplement and the documents listed below. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. These documents are an offer to sell only the Notes offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in each such document is current only as of its date.

If the information in this pricing supplement differs from the information contained in the documents listed below, you should rely on the information in this pricing supplement.

You should carefully consider, among other things, the matters set forth in “Selected Risk Considerations” in this pricing supplement and “Risk Factors” in the documents listed below, as the Notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes.

You may access these documents on the SEC website at www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC website):

Prospectus dated December 20, 2023:

https://www.sec.gov/Archives/edgar/data/1000275/000119312523299520/d645671d424b3.htm

Prospectus Supplement dated December 20, 2023:

https://www.sec.gov/Archives/edgar/data/1000275/000119312523299523/d638227d424b3.htm

Index Supplement SOL-1 dated June 6, 2024:

https://www.sec.gov/Archives/edgar/data/1000275/000114036124029164/ef20030754_424b2.htm

Product Supplement No. 1A dated May 16, 2024:

https://www.sec.gov/Archives/edgar/data/1000275/000095010324006777/dp211286_424b2-ps1a.htm

Our Central Index Key, or CIK, on the SEC website is 1000275. As used in this pricing supplement, “Royal Bank of Canada,” the “Bank,” “we,” “our” and “us” mean only Royal Bank of Canada.

P-5	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

HYPOTHETICAL RETURNS

The table and examples set forth below illustrate hypothetical payments at maturity for hypothetical performance of the Underlier, based on the Coupon Threshold and Barrier Value of 70% of the Initial Underlier Value and the Contingent Coupon of $10.00 per $1,000 principal amount of Notes. The table and examples below also assume that the Notes are not automatically called and do not account for any Contingent Coupons that may be paid prior to maturity. The table and examples are only for illustrative purposes and may not show the actual return applicable to investors.

Hypothetical Underlier Return	Payment at Maturity per $1,000 Principal Amount of Notes*	Payment at Maturity as Percentage of Principal Amount*
50.00%	$1,010.00	101.000%
40.00%	$1,010.00	101.000%
30.00%	$1,010.00	101.000%
20.00%	$1,010.00	101.000%
10.00%	$1,010.00	101.000%
5.00%	$1,010.00	101.000%
0.00%	$1,010.00	101.000%
-5.00%	$1,010.00	101.000%
-10.00%	$1,010.00	101.000%
-20.00%	$1,010.00	101.000%
-30.00%	$1,010.00	101.000%
-30.01%	$699.90	69.990%
-40.00%	$600.00	60.000%
-50.00%	$500.00	50.000%
-60.00%	$400.00	40.000%
-70.00%	$300.00	30.000%
-80.00%	$200.00	20.000%
-90.00%	$100.00	10.000%
-100.00%	$0.00	0.000%

* Including any Contingent Coupon otherwise due

Example 1 —	The value of the Underlier increases from the Initial Underlier Value to the Final Underlier Value by 30%.
	Underlier Return:	30%
	Payment at Maturity:	$1,000 + Contingent Coupon otherwise due = $1,000 + $10.00 = $1,010
	In this example, the payment at maturity is $1,010 per $1,000 principal amount of Notes. Because the Final Underlier Value is greater than the Coupon Threshold and Barrier Value, investors receive a full return of the principal amount of their Notes plus the Contingent Coupon otherwise due. This example illustrates that investors do not participate in any appreciation of the Underlier, which may be significant.

P-6	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

Example 2 —	The value of the Underlier decreases from the Initial Underlier Value to the Final Underlier Value by 10% (i.e., the Final Underlier Value is below the Initial Underlier Value but above the Coupon Threshold and Barrier Value).
	Underlier Return:	-10%
	Payment at Maturity:	$1,000 + Contingent Coupon otherwise due = $1,000 + $10.00 = $1,010
	In this example, the payment at maturity is $1,010 per $1,000 principal amount of Notes. Because the Final Underlier Value is greater than the Coupon Threshold and Barrier Value, investors receive a full return of the principal amount of their Notes plus the Contingent Coupon otherwise due.

Example 3 —	The value of the Underlier decreases from the Initial Underlier Value to the Final Underlier Value by 50% (i.e., the Final Underlier Value is below the Coupon Threshold and Barrier Value).
	Underlier Return:	-50%
	Payment at Maturity:	$1,000 + ($1,000 × -50%) = $1,000 – $500 = $500
	In this example, the payment at maturity is $500 per $1,000 principal amount of Notes, representing a loss of 50% of the principal amount. Because the Final Underlier Value is less than the Barrier Value, investors do not receive a full return of the principal amount of their Notes. In addition, because the Final Underlier Value is less than the Coupon Threshold, investors do not receive a Contingent Coupon at maturity.

Investors in the Notes could lose a substantial portion or all of the principal amount of their Notes at maturity. The table and examples above assume that the Notes are not automatically called. However, if the Notes are automatically called, investors will not receive any further payments after the Call Settlement Date.

P-7	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

SELECTED RISK CONSIDERATIONS

An investment in the Notes involves significant risks. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes. Some of the risks that apply to an investment in the Notes are summarized below, but we urge you to read also the “Risk Factors” sections of the accompanying prospectus, prospectus supplement, index supplement and product supplement. You should not purchase the Notes unless you understand and can bear the risks of investing in the Notes.

Risks Relating to the Terms and Structure of the Notes

You May Lose a Portion or All of the Principal Amount at Maturity — If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, you will lose 1% of the principal amount of your Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value. You could lose a substantial portion or all of your principal amount at maturity.

You May Not Receive Any Contingent Coupons — We will not necessarily pay any Contingent Coupons on the Notes. If the closing value of the Underlier is less than the Coupon Threshold on a Coupon Observation Date, we will not pay you the Contingent Coupon applicable to that Coupon Observation Date. If the closing value of the Underlier is less than the Coupon Threshold on each of the Coupon Observation Dates, we will not pay you any Contingent Coupons during the term of, and you will not receive a positive return on, your Notes. Generally, this non-payment of the Contingent Coupon coincides with a greater risk of principal loss on your Notes. Even if your return is positive, your return may be less than the return you would earn if you purchased one of our conventional senior interest-bearing debt securities.

You Will Not Participate in Any Appreciation of the Underlier, and Any Potential Return on the Notes Is Limited — The return on the Notes is limited to the Contingent Coupons, if any, that may be payable on the Notes, regardless of any appreciation of the Underlier, which may be significant. As a result, the return on an investment in the Notes could be less than the return on a direct investment in the Underlier.

The Notes Are Subject to an Automatic Call — If, on any Call Observation Date, the closing value of the Underlier is greater than or equal to the Initial Underlier Value, the Notes will be automatically called, and you will not receive any further payments on the Notes. Because the Notes could be called as early as approximately one year after the Issue Date, the total return on the Notes could be minimal. You may be unable to reinvest your proceeds from the automatic call in an investment with a return that is as high as the return on the Notes would have been if they had not been called.

Payments on the Notes Are Subject to Our Credit Risk, and Market Perceptions about Our Creditworthiness May Adversely Affect the Market Value of the Notes — The Notes are our senior unsecured debt securities, and your receipt of any amounts due on the Notes is dependent upon our ability to pay our obligations as they come due. If we were to default on our payment obligations, you may not receive any amounts owed to you under the Notes and you could lose your entire investment. In addition, any negative changes in market perceptions about our creditworthiness may adversely affect the market value of the Notes.

Any Payment on the Notes Will Be Determined Based on the Closing Values of the Underlier on the Dates Specified — Any payment on the Notes will be determined based on the closing values of the Underlier on the dates specified. You will not benefit from any more favorable value of the Underlier determined at any other time.

The U.S. Federal Income Tax Consequences of an Investment in the Notes Are Uncertain — There is no direct legal authority regarding the proper U.S. federal income tax treatment of the Notes, and significant aspects of the tax treatment of the Notes are uncertain. Moreover, non-U.S. investors should note that persons having withholding responsibility in respect of the Notes may withhold on any coupon paid to a non-U.S. investor, generally at a rate of 30%. We will not pay any additional amounts in respect of such withholding. You should review carefully the section entitled “United States Federal Income Tax Considerations” herein, in combination with the section entitled “United States Federal Income Tax Considerations” in the accompanying product supplement, and consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the Notes.

P-8	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

Risks Relating to the Initial Estimated Value of the Notes and the Secondary Market for the Notes

There May Not Be an Active Trading Market for the Notes; Sales in the Secondary Market May Result in Significant Losses — There may be little or no secondary market for the Notes. The Notes will not be listed on any securities exchange. RBCCM and our other affiliates may make a market for the Notes; however, they are not required to do so and, if they choose to do so, may stop any market-making activities at any time. Because other dealers are not likely to make a secondary market for the Notes, the price at which you may be able to trade your Notes is likely to depend on the price, if any, at which RBCCM or any of our other affiliates is willing to buy the Notes. Even if a secondary market for the Notes develops, it may not provide enough liquidity to allow you to easily trade or sell the Notes. We expect that transaction costs in any secondary market would be high. As a result, the difference between bid and ask prices for your Notes in any secondary market could be substantial. If you sell your Notes before maturity, you may have to do so at a substantial discount from the price that you paid for them, and as a result, you may suffer significant losses. The Notes are not designed to be short-term trading instruments. Accordingly, you should be able and willing to hold your Notes to maturity.

The Initial Estimated Value of the Notes Will Be Less Than the Public Offering Price — The initial estimated value of the Notes will be less than the public offering price of the Notes and does not represent a minimum price at which we, RBCCM or any of our other affiliates would be willing to purchase the Notes in any secondary market (if any exists) at any time. If you attempt to sell the Notes prior to maturity, their market value may be lower than the price you paid for them and the initial estimated value. This is due to, among other things, changes in the value of the Underlier, the internal funding rate we pay to issue securities of this kind (which is lower than the rate at which we borrow funds by issuing conventional fixed rate debt) and the inclusion in the public offering price of the underwriting discount, the referral fee, our estimated profit and the estimated costs relating to our hedging of the Notes. These factors, together with various credit, market and economic factors over the term of the Notes, are expected to reduce the price at which you may be able to sell the Notes in any secondary market and will affect the value of the Notes in complex and unpredictable ways. Assuming no change in market conditions or any other relevant factors, the price, if any, at which you may be able to sell your Notes prior to maturity may be less than your original purchase price, as any such sale price would not be expected to include the underwriting discount, the referral fee, our estimated profit or the hedging costs relating to the Notes. In addition, any price at which you may sell the Notes is likely to reflect customary bid-ask spreads for similar trades. In addition to bid-ask spreads, the value of the Notes determined for any secondary market price is expected to be based on a secondary market rate rather than the internal funding rate used to price the Notes and determine the initial estimated value. As a result, the secondary market price will be less than if the internal funding rate were used.

The Initial Estimated Value of the Notes Is Only an Estimate, Calculated as of the Trade Date — The initial estimated value of the Notes is based on the value of our obligation to make the payments on the Notes, together with the mid-market value of the derivative embedded in the terms of the Notes. See “Structuring the Notes” below. Our estimate is based on a variety of assumptions, including our internal funding rate (which represents a discount from our credit spreads), expectations as to dividends, interest rates and volatility and the expected term of the Notes. These assumptions are based on certain forecasts about future events, which may prove to be incorrect. Other entities may value the Notes or similar securities at a price that is significantly different than we do.

The value of the Notes at any time after the Trade Date will vary based on many factors, including changes in market conditions, and cannot be predicted with accuracy. As a result, the actual value you would receive if you sold the Notes in any secondary market, if any, should be expected to differ materially from the initial estimated value of the Notes.

Risks Relating to Conflicts of Interest and Our Trading Activities

Our and Our Affiliates’ Business and Trading Activities May Create Conflicts of Interest — You should make your own independent investigation of the merits of investing in the Notes. Our and our affiliates’ economic interests are potentially adverse to your interests as an investor in the Notes due to our and our affiliates’ business and trading activities, and we and our affiliates have no obligation to consider your interests in taking any actions that might affect the value of the Notes. Trading by us and our affiliates may adversely affect the value of the Underlier and the market value of the Notes. See “Risk Factors—Risks Relating to Conflicts of Interest” in the accompanying product supplement.

P-9	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

RBCCM’s Role as Calculation Agent May Create Conflicts of Interest — As Calculation Agent, our affiliate, RBCCM, will determine any values of the Underlier and make any other determinations necessary to calculate any payments on the Notes. In making these determinations, the Calculation Agent may be required to make discretionary judgments, including those described under “—Risks Relating to the Underlier” below. In making these discretionary judgments, the economic interests of the Calculation Agent are potentially adverse to your interests as an investor in the Notes, and any of these determinations may adversely affect any payments on the Notes. The Calculation Agent will have no obligation to consider your interests as an investor in the Notes in making any determinations with respect to the Notes.

RBCCM Coordinated with the Index Sponsor in the Development of the Underlier and the Underlying Index — Our affiliate, RBCCM, coordinated with Solactive AG (the “Index Sponsor”) in the development of the Underlier and the Underlying Index (as defined below). RBCCM had no obligation to consider your interests as an investor in the Notes in connection with that role. The inclusion of the securities in the Underlying Index is not an investment recommendation by us or RBCCM of those securities or indicative of any view that we or RBCCM have regarding those securities.

Risks Relating to the Underlier

You Will Not Have Any Rights to the Securities Included in the Underlying Index — As an investor in the Notes, you will not have voting rights or any other rights with respect to the securities included in the Underlying Index.

The Underlier Has a Limited Operating History and May Perform in Unanticipated Ways — The Underlier was launched on November 16, 2023 (the “launch date”). As a result, the Underlier has a very limited operating history. Because the Underlier is of recent origin and limited actual historical performance data exists with respect to it, your investment in the Notes may involve a greater risk than investing in securities linked to an index with a more established record of performance.

The hypothetical back-tested performance data of the Underlier provided in this pricing supplement refers to simulated performance data created by applying the Underlier’s calculation methodology to historical prices of the applicable equity securities. Such simulated performance data has been produced by the retroactive application of a back-tested methodology in hindsight. Hypothetical back-tested results are neither an indicator nor a guarantee of future results.

The Underlier Is Subject to an Adjustment Factor That Will Adversely Affect the Underlier Performance — The Underlier includes an Adjustment Factor of 2.0% per annum, calculated daily and deducted on each index calculation day. The level of the Underlier tracks the performance of the Underlying Index, which is an equal-weighted index, calculated on a gross total return basis, comprised of a fixed set of nine equity securities from the U.S. stock market (the “Underlying Index Constituents”). The Underlier will underperform the Underlying Index in all cases and the level of the Underlier may decline even if the level of the Underlying Index increases.

Any Potential Benefit From the Gross Total Return Feature of the Underlying Index Will Be Reduced by the Adjustment Factor Applied to the Underlier — The Underlier is comprised exclusively of the Underlying Index. Although the Underlying Index is a gross total return index, which means that dividends paid on the Underlying Index Constituents are reinvested in the Underlying Index, the Adjustment Factor will reduce any positive benefit from dividends paid on the Underlying Index Constituents. This fee will accrue daily and will be deducted on each index calculation day, regardless of whether any dividends are paid on the Underlying Index Constituents.

There Is No Guarantee That the Index Methodology of the Underlier or the Underlying Index Will Be Successful — The Underlying Index is composed of equity securities based on a specific investment theme. There can be no assurance that companies related to that investment theme will experience positive performance. Even if companies related to the investment theme generally experience positive performance, there is no guarantee that the Underlying Index will perform as well as any other indices or strategies that attempt to achieve a similar goal using other criteria. The Underlying Index Constituents may underperform other securities of its targeted theme. Accordingly, the investment strategy represented by the Underlying Index, and therefore the Underlier, may not be successful, and your investment in the Notes may not earn a positive return or you may suffer a loss.

P-10	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

The Underlying Index Constituents Are Not Expected to Change During the Term of the Notes, and Are Limited in Number — Unlike the constituents of many equity indices, the Underlying Index Constituents are not expected to change over the term of the Notes, unless certain types of reorganization events occur, such as if an Underlying Index Constituent is merged into another company. Accordingly, you should only invest in the Notes if you are willing to make an investment linked to the current Underlying Index Constituents.

Dividends and Distributions of the Underlying Index Constituents May Vary When Compared to Historical Levels — Historical levels of dividends and distributions paid in respect of the Underlying Index Constituents are not indicative of future payments, which payments are uncertain and depend upon various factors, including, without limitation, the financial position, earnings ratio and cash requirements of the applicable issuer and the state of financial markets in general. It is not possible to predict if dividends or distributions paid in respect of the Underlying Index Constituents will increase, decrease or remain the same over the term of the Notes.

The Underlying Index Constituents Are Concentrated in the Semiconductor Industry — The Underlying Index Constituents are issued by companies whose primary line of business is directly associated with the semiconductor industry. As a result, the value of the Notes may be subject to greater volatility and be more adversely affected by a single economic, political or regulatory occurrence affecting this industry than a different investment linked to securities of a more broadly diversified group of issuers. Semiconductor companies are vulnerable to wide fluctuations in securities prices due to rapid product obsolescence. The international operations of many semiconductor companies expose them to risks associated with instability and changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, tariffs and trade disputes, competition from subsidized foreign competitors with lower production costs and other risks inherent to international business. The semiconductor industry is highly cyclical, which may cause the operating results of many semiconductor companies to vary significantly.

The Notes Are Subject to Risks Relating to Non-U.S. Securities — Because one of the equity securities composing the Underlying Index consists of American depositary shares representing securities issued by a non-U.S. issuer, an investment in the Notes involves risks associated with the home country of that issuer. The prices of securities of non-U.S. companies may be affected by political, economic, financial and social factors in those countries, or global regions, including changes in government, economic and fiscal policies and currency exchange laws.

We May Accelerate the Notes If a Change-in-Law Event Occurs — Upon the occurrence of legal or regulatory changes that may, among other things, prohibit or otherwise materially restrict persons from holding the Notes or the Underlier, or engaging in transactions in them, the Calculation Agent may determine that a change-in-law-event has occurred and accelerate the Maturity Date for a payment determined by the Calculation Agent in its sole discretion. Any amount payable upon acceleration could be significantly less than any amount that would be due on the Notes if they were not accelerated. However, if the Calculation Agent elects not to accelerate the Notes, the value of, and any amount payable on, the Notes could be adversely affected, perhaps significantly, by the occurrence of such legal or regulatory changes. See “General Terms of Notes—Change-in-Law Events” in the accompanying product supplement.

Any Payment on the Notes May Be Postponed and Adversely Affected by the Occurrence of a Market Disruption Event — The timing and amount of any payment on the Notes is subject to adjustment upon the occurrence of a market disruption event affecting the Underlier. If a market disruption event persists for a sustained period, the Calculation Agent may make a determination of the closing value of the Underlier. See “General Terms of the Notes—Indices—Market Disruption Events,” “General Terms of the Notes—Postponement of a Determination Date” and “General Terms of the Notes—Postponement of a Payment Date” in the accompanying product supplement.

Adjustments to the Underlier or the Underlying Index Could Adversely Affect Any Payments on the Notes — The sponsor of the Underlying Index may add, delete, substitute or adjust the securities composing the Underlying Index or make other methodological changes to the Underlying Index that could affect its performance. The Calculation Agent will calculate the value to be used as the closing value of the Underlier in the event of certain material changes in, or modifications to, the Underlier. In addition, the sponsor of the Underlier may also discontinue or suspend calculation or publication of the Underlier at any time. Under these circumstances, the Calculation Agent may select a successor index that the Calculation Agent determines to be comparable to the Underlier or, if no successor index is available, the Calculation Agent will determine the value to be used as the closing value of the Underlier. Any of these

P-11	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

actions could adversely affect the value of the Underlier and, consequently, the value of the Notes. See “General Terms of the Notes—Indices—Discontinuation of, or Adjustments to, an Index” in the accompanying product supplement.

P-12	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

INFORMATION REGARDING THE UNDERLIER

The Underlier is designed to measure the performance of the Solactive Equal Weight U.S. Semi Conductor Select GTR Index (the “Underlying Index”), less an Adjustment Factor of 2.0% per annum, calculated daily and deducted on each index calculation day. The Underlying Index is an equal-weighted equity index, rebalanced on a quarterly basis, consisting of a fixed set of nine equity securities from the U.S. stock market and is intended to represent a “semiconductor” investment theme. The Underlying Index is calculated on a gross total return basis, which means that dividends paid on the constituents of the Underlying Index are reinvested in the Underlying Index. Although the Underlying Index is a gross total return index, the Adjustment Factor will counteract some or all of the positive benefit of dividends paid on the Underlying Index Constituents.

The Underlying Index is currently composed of the nine equity securities listed below:

Security Issuer	Security Type	Exchange Symbol	Exchange	Target Weighting
Advanced Micro Devices, Inc.	common stock	AMD	Nasdaq Stock Market	1/9
Applied Materials, Inc.	common stock	AMAT	Nasdaq Stock Market	1/9
Broadcom Inc.	common stock	AVGO	Nasdaq Stock Market	1/9
Intel Corporation	common stock	INTC	Nasdaq Stock Market	1/9
Micron Technology, Inc.	common stock	MU	Nasdaq Stock Market	1/9
NVIDIA Corporation	common stock	NVDA	Nasdaq Stock Market	1/9
QUALCOMM Incorporated	common stock	QCOM	Nasdaq Stock Market	1/9
Taiwan Semiconductor Manufacturing Company Limited	American depositary shares	TSM	New York Stock Exchange	1/9
Texas Instruments Incorporated	common stock	TXN	Nasdaq Stock Market	1/9

For more information about the Underlier and the Underlying Index, see “The Indices—The Solactive Equal Weight U.S. Semi Conductor Select AR Index” in the accompanying index supplement.

Hypothetical Back-Tested and Historical Information

The following graph sets forth hypothetical back-tested and historical closing values of the Underlier for the period from January 1, 2015 to June 27, 2025. The Underlier was launched on November 16, 2023. Accordingly, all closing values for periods prior to the launch date are based on hypothetical back-tested information, utilizing the same methodology as is currently in place for the Underlier. The hypothetical back-tested performance of the Underlier is based on criteria that have been applied retroactively with the benefit of hindsight; these criteria cannot account for all financial risk that may affect the actual performance of the Underlier in the future. The future performance of the Underlier may vary significantly from the hypothetical back-tested and historical performance illustrated in the graph below.

P-13	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

The red line represents a hypothetical Coupon Threshold and Barrier Value based on the closing value of the Underlier on June 27, 2025. We obtained the information in the graph from Bloomberg Financial Markets, without independent investigation. We cannot give you assurance that the performance of the Underlier will result in the return of all of your initial investment.

Solactive Equal Weight U.S. Semi Conductor Select AR Index

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

P-14	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS

You should review carefully the section in the accompanying product supplement entitled “United States Federal Income Tax Considerations.” The following discussion, when read in combination with that section, constitutes the full opinion of our counsel, Davis Polk & Wardwell LLP, regarding the material U.S. federal income tax consequences of owning and disposing of the Notes.

Generally, this discussion assumes that you purchased the Notes for cash in the original issuance at the stated issue price and does not address other circumstances specific to you, including consequences that may arise due to any other investments relating to the Underlier. You should consult your tax adviser regarding the effect any such circumstances may have on the U.S. federal income tax consequences of your ownership of a Note.

In the opinion of our counsel, which is based on current market conditions, it is reasonable to treat the Notes for U.S. federal income tax purposes as prepaid financial contracts with associated coupons, and any coupons as ordinary income, as described in the section entitled “United States Federal Income Tax Considerations—Tax Consequences to U.S. Holders—Notes Treated as Prepaid Financial Contracts with Associated Coupons” in the accompanying product supplement. There is uncertainty regarding this treatment, and the Internal Revenue Service (the “IRS”) or a court might not agree with it. Moreover, because this treatment of the Notes and our counsel’s opinion are based on market conditions as of the date of this preliminary pricing supplement, each is subject to confirmation on the Trade Date. A different tax treatment could be adverse to you.

We do not plan to request a ruling from the IRS regarding the treatment of the Notes. An alternative characterization of the Notes could materially and adversely affect the tax consequences of ownership and disposition of the Notes, including the timing and character of income recognized. In addition, the U.S. Treasury Department and the IRS have requested comments on various issues regarding the U.S. federal income tax treatment of “prepaid forward contracts” and similar financial instruments and have indicated that such transactions may be the subject of future regulations or other guidance. Furthermore, members of Congress have proposed legislative changes to the tax treatment of derivative contracts. Any legislation, Treasury regulations or other guidance promulgated after consideration of these issues could materially and adversely affect the tax consequences of an investment in the Notes, possibly with retroactive effect.

Non-U.S. Holders. The U.S. federal income tax treatment of the coupons is unclear. To the extent that we have withholding responsibility in respect of the Notes, we would expect generally to treat the coupons as subject to U.S. withholding tax. Moreover, you should expect that, if the applicable withholding agent determines that withholding tax should apply, it will be at a rate of 30% (or lower treaty rate). In order to claim an exemption from, or a reduction in, the 30% withholding under an applicable treaty, you may need to comply with certification requirements to establish that you are not a U.S. person and are eligible for such an exemption or reduction under an applicable tax treaty. You should consult your tax adviser regarding the tax treatment of the coupons.

As discussed under “United States Federal Income Tax Considerations—Tax Consequences to Non-U.S. Holders—Dividend Equivalents under Section 871(m) of the Code” in the accompanying product supplement, Section 871(m) of the Internal Revenue Code and Treasury regulations promulgated thereunder (“Section 871(m)”) generally impose a 30% withholding tax on dividend equivalents paid or deemed paid to Non-U.S. Holders with respect to certain financial instruments linked to U.S. equities or indices that include U.S. equities. The Treasury regulations, as modified by an IRS notice, exempt financial instruments issued prior to January 1, 2027 that do not have a “delta” of one. Based on certain determinations made by us, we expect that Section 871(m) will not apply to the Notes with regard to Non-U.S. Holders. Our determination is not binding on the IRS, and the IRS may disagree with this determination. If necessary, further information regarding the potential application of Section 871(m) will be provided in the final pricing supplement for the Notes.

We will not be required to pay any additional amounts with respect to U.S. federal withholding taxes.

You should consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the Notes, including possible alternative treatments, as well as tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.

P-15	RBC Capital Markets, LLC

Auto-Callable Contingent Coupon Barrier Notes Linked to the Solactive Equal Weight U.S. Semi Conductor Select AR Index

SUPPLEMENTAL PLAN OF DISTRIBUTION (CONFLICTS OF INTEREST)

The Notes are offered initially to investors at a purchase price equal to par, except with respect to certain accounts as indicated on the cover page of this pricing supplement. We or one of our affiliates may pay the underwriting discount and may pay a broker-dealer that is not affiliated with us a referral fee, in each case as set forth on the cover page of this pricing supplement.

The value of the Notes shown on your account statement may be based on RBCCM’s estimate of the value of the Notes if RBCCM or another of our affiliates were to make a market in the Notes (which it is not obligated to do). That estimate will be based on the price that RBCCM may pay for the Notes in light of then-prevailing market conditions, our creditworthiness and transaction costs. For a period of approximately nine months after the Issue Date, the value of the Notes that may be shown on your account statement may be higher than RBCCM’s estimated value of the Notes at that time. This is because the estimated value of the Notes will not include the underwriting discount, the referral fee or our hedging costs and profits; however, the value of the Notes shown on your account statement during that period may initially be a higher amount, reflecting the addition of the underwriting discount, the referral fee and our estimated costs and profits from hedging the Notes. This excess is expected to decrease over time until the end of this period. After this period, if RBCCM repurchases your Notes, it expects to do so at prices that reflect their estimated value.

RBCCM or another of its affiliates or agents may use this pricing supplement in the initial sale of the Notes. In addition, RBCCM or another of our affiliates may use this pricing supplement in a market-making transaction in the Notes after their initial sale. Unless we or our agent informs the purchaser otherwise in the confirmation of sale, this pricing supplement is being used in a market-making transaction.

For additional information about the settlement cycle of the Notes, see “Plan of Distribution” in the accompanying prospectus. For additional information as to the relationship between us and RBCCM, see the section “Plan of Distribution—Conflicts of Interest” in the accompanying prospectus.

STRUCTURING THE NOTES

The Notes are our debt securities. As is the case for all of our debt securities, including our structured notes, the economic terms of the Notes reflect our actual or perceived creditworthiness. In addition, because structured notes result in increased operational, funding and liability management costs to us, we typically borrow the funds under structured notes at a rate that is lower than the rate that we might pay for a conventional fixed or floating rate debt security of comparable maturity. The lower internal funding rate, the underwriting discount, the referral fee and the hedging-related costs relating to the Notes reduce the economic terms of the Notes to you and result in the initial estimated value for the Notes being less than their public offering price. Unlike the initial estimated value, any value of the Notes determined for purposes of a secondary market transaction may be based on a secondary market rate, which may result in a lower value for the Notes than if our initial internal funding rate were used.

In order to satisfy our payment obligations under the Notes, we may choose to enter into certain hedging arrangements (which may include call options, put options or other derivatives) with RBCCM and/or one of our other subsidiaries. The terms of these hedging arrangements take into account a number of factors, including our creditworthiness, interest rate movements, volatility and the tenor of the Notes. The economic terms of the Notes and the initial estimated value depend in part on the terms of these hedging arrangements.

See “Selected Risk Considerations—Risks Relating to the Initial Estimated Value of the Notes and the Secondary Market for the Notes—The Initial Estimated Value of the Notes Will Be Less Than the Public Offering Price” above.

P-16	RBC Capital Markets, LLC

Source: View Original Filing on SEC EDGAR

FAQ

What is the coupon rate on Royal Bank of Canada's Auto-Callable Contingent Coupon Barrier Notes (RY)?

The Notes pay a 12.00% per annum contingent coupon (1.00% monthly) when the Underlier closes at or above 70% of its initial level.

When can the Notes be automatically called?

Starting one year after trade date, the Notes are called on any quarterly observation date where the index closes at or above its initial level.

How much principal protection do investors have at maturity?

Principal is fully repaid only if the index is at or above 70% of the initial level; below that, losses mirror the negative index return.

What is the initial estimated value compared with the offer price?

RBC estimates a value of $907.50–$957.50 per $1,000 Note, below the 100% public offering price due to fees and hedging costs.

Is there an exchange listing or guaranteed liquidity for these Notes?

No. The Notes will not be listed; any secondary trading depends solely on RBC affiliates and may involve wide bid-ask spreads.

What companies make up the Solactive Equal Weight U.S. Semiconductor Select AR Index?

The index equally weights nine semiconductor equities, including AMD, AMAT, AVGO, INTC, MU, NVDA, QCOM, TSM, and TXN.

Are the Notes bail-inable under Canadian regulations?

No. The supplement states the Notes are not bail-inable under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.

[424B2] Royal Bank of Canada Prospectus Supplement

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FAQ

What is the coupon rate on Royal Bank of Canada's Auto-Callable Contingent Coupon Barrier Notes (RY)?

When can the Notes be automatically called?

How much principal protection do investors have at maturity?

What is the initial estimated value compared with the offer price?

Is there an exchange listing or guaranteed liquidity for these Notes?

What companies make up the Solactive Equal Weight U.S. Semiconductor Select AR Index?

Are the Notes bail-inable under Canadian regulations?

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[424B2] Royal Bank of Canada Prospectus Supplement

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Structured Products Analyst neutral

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FAQ

What is the coupon rate on Royal Bank of Canada's Auto-Callable Contingent Coupon Barrier Notes (RY)?

When can the Notes be automatically called?

How much principal protection do investors have at maturity?

What is the initial estimated value compared with the offer price?

Is there an exchange listing or guaranteed liquidity for these Notes?

What companies make up the Solactive Equal Weight U.S. Semiconductor Select AR Index?

Are the Notes bail-inable under Canadian regulations?

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