[FWP] Royal Bank of Canada Free Writing Prospectus
Royal Bank of Canada has filed a Free Writing Prospectus for Capped Leveraged Return Notes with Absolute Return Buffer linked to an international equity index basket. The notes offer a $10.00 principal amount per unit with approximately two-year term.
Key features include:
- 1.01 to 1.21-to-1 upside exposure to index basket increases, capped at 25% return ($12.50 per unit)
- Positive return equal to absolute value of market decline up to 10%
- 90% of principal at risk with 1-to-1 downside exposure beyond 10% decline
- Participation Rate: 101-121% (to be determined)
The basket comprises six international indices with varying weights: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei Stock Average (20%), Swiss Market Index (7.5%), S&P/ASX 200 (7.5%), and FTSE China 50 (5%). Key risks include potential principal loss, limited returns, credit risk, and no guaranteed secondary market trading.
Royal Bank of Canada ha presentato un Free Writing Prospectus per Note a Rendimento Leverage Capped con Buffer di Rendimento Assoluto legate a un paniere di indici azionari internazionali. Le note offrono un importo nominale di 10,00 $ per unità con una durata di circa due anni.
Caratteristiche principali includono:
- Esposizione al rialzo da 1,01 a 1,21 a 1 rispetto all’aumento del paniere di indici, con rendimento massimo del 25% (12,50 $ per unità)
- Rendimento positivo pari al valore assoluto del calo di mercato fino al 10%
- 90% del capitale a rischio con esposizione al ribasso 1 a 1 oltre il calo del 10%
- Tasso di partecipazione: 101-121% (da definire)
Il paniere è composto da sei indici internazionali con pesi diversi: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei Stock Average (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) e FTSE China 50 (5%). I rischi principali comprendono la possibile perdita del capitale, rendimenti limitati, rischio di credito e assenza di garanzia per la negoziazione sul mercato secondario.
Royal Bank of Canada ha presentado un Free Writing Prospectus para Notas con Retorno Apalancado Limitado y Buffer de Retorno Absoluto vinculadas a una cesta de índices bursátiles internacionales. Las notas ofrecen un monto principal de 10,00 $ por unidad con un plazo aproximado de dos años.
Características clave incluyen:
- Exposición al alza de 1,01 a 1,21 a 1 ante aumentos en la cesta de índices, con un retorno máximo del 25% (12,50 $ por unidad)
- Retorno positivo igual al valor absoluto de la caída del mercado hasta un 10%
- 90% del principal en riesgo con exposición a la baja 1 a 1 más allá de una caída del 10%
- Tasa de participación: 101-121% (por determinar)
La cesta está compuesta por seis índices internacionales con diferentes ponderaciones: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei Stock Average (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) y FTSE China 50 (5%). Los principales riesgos incluyen posible pérdida del principal, retornos limitados, riesgo crediticio y ausencia de garantía para negociación en mercado secundario.
로열 뱅크 오브 캐나다는 국제 주가지수 바스켓에 연계된 절대 수익 버퍼가 포함된 상한 레버리지 수익 노트에 대한 Free Writing Prospectus를 제출했습니다. 이 노트는 단위당 10.00달러 원금 금액과 약 2년의 만기를 제공합니다.
주요 특징은 다음과 같습니다:
- 지수 바스켓 상승에 대해 1.01에서 1.21 대 1의 상승 노출, 최대 25% 수익 (단위당 12.50달러)로 제한
- 시장 하락 10%까지 절대값에 해당하는 긍정적 수익
- 원금의 90%가 위험에 노출되며, 10% 하락 초과 시 1 대 1 하락 노출
- 참여율: 101-121% (추후 결정)
바스켓은 다음 여섯 개 국제 지수로 구성되며 가중치는 각각 다릅니다: EURO STOXX 50 (40%), FTSE 100 (20%), 니케이 주가 평균 (20%), 스위스 마켓 지수 (7.5%), S&P/ASX 200 (7.5%), FTSE 차이나 50 (5%). 주요 위험요소는 원금 손실 가능성, 제한된 수익, 신용 위험, 그리고 2차 시장 거래 보장 부재입니다.
Royal Bank of Canada a déposé un Free Writing Prospectus pour des Notes à Rendement Effet de Levier Plafonné avec Buffer de Rendement Absolu liées à un panier d’indices boursiers internationaux. Les notes offrent un montant principal de 10,00 $ par unité avec une durée d’environ deux ans.
Les caractéristiques clés comprennent :
- Exposition à la hausse de 1,01 à 1,21 pour 1 liée à l’augmentation du panier d’indices, plafonnée à un rendement de 25% (12,50 $ par unité)
- Rendement positif égal à la valeur absolue de la baisse du marché jusqu’à 10%
- 90% du principal à risque avec une exposition à la baisse de 1 pour 1 au-delà d’une baisse de 10%
- Taux de participation : 101-121% (à déterminer)
Le panier comprend six indices internationaux avec des pondérations variées : EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei Stock Average (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) et FTSE China 50 (5%). Les principaux risques incluent la perte potentielle du capital, des rendements limités, le risque de crédit et l’absence de garantie de négociation sur le marché secondaire.
Royal Bank of Canada hat einen Free Writing Prospectus für Capped Leveraged Return Notes mit Absolute Return Buffer veröffentlicht, die an einen internationalen Aktienindexkorb gekoppelt sind. Die Notes bieten einen Nominalbetrag von 10,00 $ pro Einheit mit einer Laufzeit von etwa zwei Jahren.
Wesentliche Merkmale umfassen:
- Aufwärtsaussetzung von 1,01 bis 1,21 zu 1 bei Anstieg des Indexkorbs, begrenzt auf eine Rendite von 25% (12,50 $ pro Einheit)
- Positiver Ertrag in Höhe des absoluten Werts des Marktverlusts bis zu 10%
- 90% des Kapitals sind dem Risiko ausgesetzt mit einem 1:1 Abwärtsrisiko bei Verlusten über 10%
- Partizipationsrate: 101-121% (wird noch festgelegt)
Der Korb besteht aus sechs internationalen Indizes mit unterschiedlichen Gewichtungen: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei Stock Average (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) und FTSE China 50 (5%). Wichtige Risiken sind möglicher Kapitalverlust, begrenzte Renditen, Kreditrisiko und keine Garantie für den Handel am Sekundärmarkt.
- RBC is offering structured notes with leveraged upside potential of 101-121% participation in international equity index gains
- Product provides downside protection with positive returns for market declines up to 10%, offering unique risk mitigation
- Well-diversified international exposure across major markets (Europe 40%, UK 20%, Japan 20%, Switzerland 7.5%, Australia 7.5%, China 5%)
- Returns are capped at 25% (maximum $12.50 per $10 unit) limiting upside potential in strong bull markets
- 90% of principal is at risk with 1:1 downside exposure beyond 10% market decline
- No secondary market trading expected, limiting liquidity for investors
- No dividend participation from underlying indices, potentially reducing total return compared to direct index investment
Royal Bank of Canada ha presentato un Free Writing Prospectus per Note a Rendimento Leverage Capped con Buffer di Rendimento Assoluto legate a un paniere di indici azionari internazionali. Le note offrono un importo nominale di 10,00 $ per unità con una durata di circa due anni.
Caratteristiche principali includono:
- Esposizione al rialzo da 1,01 a 1,21 a 1 rispetto all’aumento del paniere di indici, con rendimento massimo del 25% (12,50 $ per unità)
- Rendimento positivo pari al valore assoluto del calo di mercato fino al 10%
- 90% del capitale a rischio con esposizione al ribasso 1 a 1 oltre il calo del 10%
- Tasso di partecipazione: 101-121% (da definire)
Il paniere è composto da sei indici internazionali con pesi diversi: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei Stock Average (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) e FTSE China 50 (5%). I rischi principali comprendono la possibile perdita del capitale, rendimenti limitati, rischio di credito e assenza di garanzia per la negoziazione sul mercato secondario.
Royal Bank of Canada ha presentado un Free Writing Prospectus para Notas con Retorno Apalancado Limitado y Buffer de Retorno Absoluto vinculadas a una cesta de índices bursátiles internacionales. Las notas ofrecen un monto principal de 10,00 $ por unidad con un plazo aproximado de dos años.
Características clave incluyen:
- Exposición al alza de 1,01 a 1,21 a 1 ante aumentos en la cesta de índices, con un retorno máximo del 25% (12,50 $ por unidad)
- Retorno positivo igual al valor absoluto de la caída del mercado hasta un 10%
- 90% del principal en riesgo con exposición a la baja 1 a 1 más allá de una caída del 10%
- Tasa de participación: 101-121% (por determinar)
La cesta está compuesta por seis índices internacionales con diferentes ponderaciones: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei Stock Average (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) y FTSE China 50 (5%). Los principales riesgos incluyen posible pérdida del principal, retornos limitados, riesgo crediticio y ausencia de garantía para negociación en mercado secundario.
로열 뱅크 오브 캐나다는 국제 주가지수 바스켓에 연계된 절대 수익 버퍼가 포함된 상한 레버리지 수익 노트에 대한 Free Writing Prospectus를 제출했습니다. 이 노트는 단위당 10.00달러 원금 금액과 약 2년의 만기를 제공합니다.
주요 특징은 다음과 같습니다:
- 지수 바스켓 상승에 대해 1.01에서 1.21 대 1의 상승 노출, 최대 25% 수익 (단위당 12.50달러)로 제한
- 시장 하락 10%까지 절대값에 해당하는 긍정적 수익
- 원금의 90%가 위험에 노출되며, 10% 하락 초과 시 1 대 1 하락 노출
- 참여율: 101-121% (추후 결정)
바스켓은 다음 여섯 개 국제 지수로 구성되며 가중치는 각각 다릅니다: EURO STOXX 50 (40%), FTSE 100 (20%), 니케이 주가 평균 (20%), 스위스 마켓 지수 (7.5%), S&P/ASX 200 (7.5%), FTSE 차이나 50 (5%). 주요 위험요소는 원금 손실 가능성, 제한된 수익, 신용 위험, 그리고 2차 시장 거래 보장 부재입니다.
Royal Bank of Canada a déposé un Free Writing Prospectus pour des Notes à Rendement Effet de Levier Plafonné avec Buffer de Rendement Absolu liées à un panier d’indices boursiers internationaux. Les notes offrent un montant principal de 10,00 $ par unité avec une durée d’environ deux ans.
Les caractéristiques clés comprennent :
- Exposition à la hausse de 1,01 à 1,21 pour 1 liée à l’augmentation du panier d’indices, plafonnée à un rendement de 25% (12,50 $ par unité)
- Rendement positif égal à la valeur absolue de la baisse du marché jusqu’à 10%
- 90% du principal à risque avec une exposition à la baisse de 1 pour 1 au-delà d’une baisse de 10%
- Taux de participation : 101-121% (à déterminer)
Le panier comprend six indices internationaux avec des pondérations variées : EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei Stock Average (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) et FTSE China 50 (5%). Les principaux risques incluent la perte potentielle du capital, des rendements limités, le risque de crédit et l’absence de garantie de négociation sur le marché secondaire.
Royal Bank of Canada hat einen Free Writing Prospectus für Capped Leveraged Return Notes mit Absolute Return Buffer veröffentlicht, die an einen internationalen Aktienindexkorb gekoppelt sind. Die Notes bieten einen Nominalbetrag von 10,00 $ pro Einheit mit einer Laufzeit von etwa zwei Jahren.
Wesentliche Merkmale umfassen:
- Aufwärtsaussetzung von 1,01 bis 1,21 zu 1 bei Anstieg des Indexkorbs, begrenzt auf eine Rendite von 25% (12,50 $ pro Einheit)
- Positiver Ertrag in Höhe des absoluten Werts des Marktverlusts bis zu 10%
- 90% des Kapitals sind dem Risiko ausgesetzt mit einem 1:1 Abwärtsrisiko bei Verlusten über 10%
- Partizipationsrate: 101-121% (wird noch festgelegt)
Der Korb besteht aus sechs internationalen Indizes mit unterschiedlichen Gewichtungen: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei Stock Average (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) und FTSE China 50 (5%). Wichtige Risiken sind möglicher Kapitalverlust, begrenzte Renditen, Kreditrisiko und keine Garantie für den Handel am Sekundärmarkt.
Registration Statement No. 333-275898
Filed Pursuant to Rule 433
| CAPPED LEVERAGED RETURN NOTES WITH ABSOLUTE RETURN BUFFER |
| Capped Leveraged Return Notes with Absolute Return Buffer Linked to an International Equity Index Basket | |
| Issuer | Royal Bank of Canada (“RBC”). References on this page to “we,” “us” or “our” mean RBC. |
| Principal Amount | $10.00 per unit |
| Term | Approximately two years |
| Market Measure | An international equity index basket (the “Basket”) composed of the EURO STOXX 50® Index (Bloomberg symbol “SX5E”), the FTSE® 100 Index (Bloomberg symbol “UKX”), the Nikkei Stock Average Index (Bloomberg symbol “NKY”), the Swiss Market Index (Bloomberg symbol “SMI”), the S&P®/ASX 200 Index (Bloomberg symbol “AS51”) and the FTSE® China 50 Index (Bloomberg symbol "XIN0I"). The EURO STOXX 50® Index will be given an initial weight of 40.00%, each of the FTSE® 100 Index and the Nikkei Stock Average Index will be given an initial weight of 20.00%, each of the Swiss Market Index and the S&P®/ASX 200 Index will be given an initial weight of 7.50% and the FTSE® China 50 Index will be given an initial weight of 5.00%. |
| Payout Profile at Maturity | · [1.01 to 1.21]-to-1 upside exposure to increases in the Market Measure, subject to the Capped Value · A positive return equal to the absolute value of the percentage decline in the value of the Market Measure only if the Market Measure does not decline by more than 10.00% (e.g., if the negative return of the Market Measure is -5.00%, you will receive a positive return of +5.00%) · 1-to-1 downside exposure to decreases in the Market Measure beyond a 10.00% decline, with 90.00% of your principal at risk |
| Participation Rate | [101.00% to 121.00%], to be determined on the pricing date |
| Threshold Value | 90.00% of the Starting Value |
| Capped Value | $12.50 per unit, a 25.00% return over the principal amount |
| Preliminary Offering Documents | https://www.sec.gov/Archives/edgar/data/1000275/000095010325007837/dp230535_424b2-mlacd.htm |
| Exchange Listing | No |
You should read the relevant Preliminary Offering Documents before you invest. Click on the Preliminary Offering Documents hyperlink above or call your Financial Advisor for a hard copy. Risk Factors Please see the Preliminary Offering Documents for a description of certain risks related to this investment, including, but not limited to, the following: · Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal. · Any positive return on the notes is limited. The notes provide for a positive return if the value of the Market Measure increases or does not decrease by more than 10.00%. However, any positive return on the notes based on the appreciation of the Market Measure will be limited to the return represented by the Capped Value. In addition, the absolute value return feature applies only if the Ending Value is less than the Starting Value but is greater than or equal to the Threshold Value. Because the Threshold Value will be 90.00% of the Starting Value, any positive return due to the depreciation of the Market Measure will be limited to 10.00%. Any decline in the Ending Value from the Starting Value by more than 10.00% will result in a loss, rather than a positive return, on the notes. · Your return on the notes may be less than the yield you could earn by owning a conventional fixed or floating rate debt security of comparable maturity. · Payments on the notes are subject to our credit risk, and actual or perceived changes in our creditworthiness are expected to affect the value of the notes. · Your investment return is limited and may be less than a comparable investment directly in the securities included in the Basket Components. · The initial estimated value of the notes is only an estimate, determined as of a particular point in time by reference to our and our affiliates’ pricing models. · The public offering price you pay for the notes will exceed the initial estimated value. · The initial estimated value does not represent a minimum or maximum price at which we, MLPF&S, BofAS or any of our affiliates would be willing to purchase your notes in any secondary market (if any exists) at any time. · A trading market is not expected to develop for the notes. · Our business, hedging and trading activities, and those of MLPF&S, BofAS and our respective affiliates (including trades in the securities included in the Basket Components), and any hedging and trading activities we, MLPF&S, BofAS or our respective affiliates engage in for our clients’ accounts, may affect the market value and return of the notes and may create conflicts of interest with you. · There may be potential conflicts of interest involving the calculation agent, which is BofAS. · Changes in the level of one Basket Component may be offset by changes in the levels of the other Basket Components. · The index sponsors may adjust each Basket Component in a way that affects its level, and the index sponsors have no obligation to consider your interests. · You will have no rights of a holder of the securities included in the Basket Components, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those securities. · While we, MLPF&S, BofAS or our respective affiliates may from time to time own the securities included in the Basket Components, we, MLPF&S, BofAS and our respective affiliates do not control the issuers of those securities, and have not verified any disclosure made by any other company. · Your return on the notes and the value of the notes may be affected by exchange rate movements and factors affecting the international securities markets, specifically changes in the countries represented by the Basket Components. · The U.S. federal income tax consequences of an investment in the notes are uncertain. Final terms will be set on the pricing date within the given range for the specified Market-Linked Investment. Please see the Preliminary Offering Documents for complete product disclosure, including related risks and tax disclosure. | |
|
| The graph above and the table below reflect the hypothetical return on the notes, based on the terms contained in the table to the left (using the mid-point for any range(s)). The graph and the table have been prepared for purposes of illustration only and do not take into account any tax consequences from investing in the notes. |
| Hypothetical Percentage Change from the Starting Value to the Ending Value | Hypothetical Redemption Amount per Unit | Hypothetical Total Rate of Return on the Notes |
| -100.00% | $1.000 | -90.00% |
| -50.00% | $6.000 | -40.00% |
| -40.00% | $7.000 | -30.00% |
| -20.00% | $9.000 | -10.00% |
| -10.00%(1) | $11.000(2) | 10.00% |
| -5.00% | $10.500 | 5.00% |
| -3.00% | $10.300 | 3.00% |
| 0.00% | $10.000 | 0.00% |
| 2.00% | $10.222 | 2.22% |
| 3.00% | $10.333 | 3.33% |
| 5.00% | $10.555 | 5.55% |
| 10.00% | $11.110 | 11.10% |
| 20.00% | $12.220 | 22.20% |
| 22.53% | $12.500(3) | 25.00% |
| 30.00% | $12.500 | 25.00% |
| 40.00% | $12.500 | 25.00% |
| 50.00% | $12.500 | 25.00% |
| 60.00% | $12.500 | 25.00% |
|
(1) This hypothetical percentage change corresponds to the Threshold Value. (2) Any positive return based on the depreciation of the Basket cannot exceed the return represented by the Threshold Value. (3) Any positive return based on the appreciation of the Basket cannot exceed the return represented by the Capped Value. |
RBC has filed a registration statement (including a product supplement, a prospectus supplement and a prospectus) with the SEC for the offering to which this document relates. Before you invest, you should read those documents, and the other documents that RBC has filed with the SEC, for more complete information about RBC and this offering. You may get these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, RBC, any agent, or any dealer participating in this offering will arrange to send you these documents if you so request by calling toll-free 1-800-294-1322.
FAQ
What are the key features of RY's new Capped Leveraged Return Notes?
What is the composition of the international equity index basket for RY's new notes?
What is the maximum return possible on RY's Capped Leveraged Return Notes?
What are the main risks of investing in RY's new Leveraged Return Notes?
How does the absolute return buffer work in RY's new notes?
