[FWP] Royal Bank of Canada Free Writing Prospectus
Royal Bank of Canada is offering Accelerated Return Notes (ARNs) linked to the EURO STOXX 50 Index with a 14-month term. Each unit has a principal amount of $10.00 with the following key features:
- 3-to-1 upside exposure (300% participation rate) to index increases, capped at $11.50-$11.90 per unit (15-19% return)
- 1-to-1 downside exposure with full principal at risk
- No exchange listing or secondary market expected
Key risks include: potential loss of principal, credit risk of RBC, capped returns, currency exposure to the Eurozone, and limited liquidity. The notes offer enhanced upside potential but expose investors to full downside risk. The public offering price will exceed the initial estimated value, and returns may be less than direct investment in the index components.
Royal Bank of Canada propone Note a Rendimento Accelerato (ARN) collegate all'indice EURO STOXX 50 con una durata di 14 mesi. Ogni unità ha un importo nominale di 10,00 $ con le seguenti caratteristiche principali:
- Esposizione al rialzo triplicata (tasso di partecipazione del 300%) agli aumenti dell'indice, con un rendimento massimo compreso tra 11,50 $ e 11,90 $ per unità (15-19% di ritorno)
- Esposizione al ribasso pari a 1 a 1 con il capitale completamente a rischio
- Non è prevista quotazione in borsa né un mercato secondario
I rischi principali includono: possibile perdita del capitale, rischio di credito di RBC, rendimenti limitati, esposizione valutaria all'Eurozona e liquidità ridotta. Le note offrono un potenziale di guadagno maggiore ma espongono gli investitori al rischio totale di perdita. Il prezzo di offerta pubblica sarà superiore al valore inizialmente stimato e i rendimenti potrebbero essere inferiori rispetto a un investimento diretto nei componenti dell'indice.
Royal Bank of Canada ofrece Notas de Retorno Acelerado (ARN) vinculadas al índice EURO STOXX 50 con un plazo de 14 meses. Cada unidad tiene un importe principal de 10,00 $ con las siguientes características clave:
- Exposición al alza de 3 a 1 (tasa de participación del 300%) en aumentos del índice, con un límite entre 11,50 $ y 11,90 $ por unidad (retorno del 15-19%)
- Exposición a la baja de 1 a 1 con el principal totalmente en riesgo
- No se espera cotización en bolsa ni mercado secundario
Los riesgos clave incluyen: posible pérdida del principal, riesgo crediticio de RBC, rendimientos limitados, exposición cambiaria a la zona euro y liquidez limitada. Las notas ofrecen un potencial de ganancia aumentado pero exponen a los inversores a todo el riesgo a la baja. El precio de la oferta pública será superior al valor estimado inicialmente y los retornos podrían ser menores que invertir directamente en los componentes del índice.
로열 뱅크 오브 캐나다는 14개월 만기 EURO STOXX 50 지수 연계 가속 수익 노트(ARN)를 제공합니다. 각 단위는 10.00달러의 원금을 가지며 주요 특징은 다음과 같습니다:
- 지수 상승에 대해 3대1 상승 노출(300% 참여율), 단위당 11.50~11.90달러로 상한 설정 (15~19% 수익)
- 1대1 하락 노출, 원금 전액 위험 부담
- 거래소 상장 및 2차 시장은 예상되지 않음
주요 위험 요소로는 원금 손실 가능성, RBC 신용 위험, 수익 상한, 유로존 통화 노출, 제한된 유동성이 있습니다. 이 노트는 향상된 상승 잠재력을 제공하지만 투자자에게 전면적인 하락 위험을 노출합니다. 공개 발행 가격은 초기 예상 가치보다 높으며, 수익률은 지수 구성 종목에 직접 투자하는 것보다 낮을 수 있습니다.
Royal Bank of Canada propose des Notes à Rendement Accéléré (ARN) liées à l'indice EURO STOXX 50 avec une durée de 14 mois. Chaque unité a un montant principal de 10,00 $ avec les caractéristiques clés suivantes :
- Exposition à la hausse à un ratio de 3 pour 1 (taux de participation de 300 %) aux augmentations de l'indice, plafonnée entre 11,50 $ et 11,90 $ par unité (rendement de 15 à 19 %)
- Exposition à la baisse à un ratio de 1 pour 1 avec principal entièrement à risque
- Pas de cotation en bourse ni de marché secondaire attendu
Les principaux risques incluent : perte potentielle du principal, risque de crédit de RBC, rendements plafonnés, exposition monétaire à la zone euro et liquidité limitée. Ces notes offrent un potentiel de hausse accru mais exposent les investisseurs à un risque total à la baisse. Le prix d'offre publique sera supérieur à la valeur initialement estimée, et les rendements pourraient être inférieurs à ceux d'un investissement direct dans les composants de l'indice.
Royal Bank of Canada bietet beschleunigte Renditenoten (ARNs) an, die an den EURO STOXX 50 Index mit einer Laufzeit von 14 Monaten gekoppelt sind. Jede Einheit hat einen Nominalbetrag von 10,00 $ mit folgenden Hauptmerkmalen:
- 3-zu-1 Aufwärtsbeteiligung (300% Partizipationsrate) an Indexsteigerungen, begrenzt auf 11,50 $ bis 11,90 $ pro Einheit (15-19% Rendite)
- 1-zu-1 Abwärtsbeteiligung mit vollem Kapitalschutzrisiko
- Keine Börsennotierung oder Sekundärmarkt erwartet
Wesentliche Risiken umfassen: potenzieller Kapitalverlust, Kreditrisiko von RBC, begrenzte Renditen, Währungsrisiko gegenüber der Eurozone und eingeschränkte Liquidität. Die Notes bieten ein erhöhtes Aufwärtspotenzial, setzen Anleger jedoch dem vollen Abwärtsrisiko aus. Der öffentliche Ausgabepreis wird den anfänglich geschätzten Wert übersteigen, und die Renditen könnten geringer ausfallen als bei einer direkten Investition in die Indexbestandteile.
- Offers 3-to-1 upside exposure to EURO STOXX 50 Index gains with potential returns of 15-19% over 14 months
- Provides enhanced participation rate of 300% up to the capped value, allowing amplified returns in moderately bullish scenarios
- No principal protection with full 1:1 downside exposure to index losses
- Returns are capped at $11.50-$11.90 per unit, limiting upside potential in strong bull markets
- No secondary market trading expected, limiting liquidity for investors
- Subject to Royal Bank of Canada's credit risk with no FDIC insurance
Royal Bank of Canada propone Note a Rendimento Accelerato (ARN) collegate all'indice EURO STOXX 50 con una durata di 14 mesi. Ogni unità ha un importo nominale di 10,00 $ con le seguenti caratteristiche principali:
- Esposizione al rialzo triplicata (tasso di partecipazione del 300%) agli aumenti dell'indice, con un rendimento massimo compreso tra 11,50 $ e 11,90 $ per unità (15-19% di ritorno)
- Esposizione al ribasso pari a 1 a 1 con il capitale completamente a rischio
- Non è prevista quotazione in borsa né un mercato secondario
I rischi principali includono: possibile perdita del capitale, rischio di credito di RBC, rendimenti limitati, esposizione valutaria all'Eurozona e liquidità ridotta. Le note offrono un potenziale di guadagno maggiore ma espongono gli investitori al rischio totale di perdita. Il prezzo di offerta pubblica sarà superiore al valore inizialmente stimato e i rendimenti potrebbero essere inferiori rispetto a un investimento diretto nei componenti dell'indice.
Royal Bank of Canada ofrece Notas de Retorno Acelerado (ARN) vinculadas al índice EURO STOXX 50 con un plazo de 14 meses. Cada unidad tiene un importe principal de 10,00 $ con las siguientes características clave:
- Exposición al alza de 3 a 1 (tasa de participación del 300%) en aumentos del índice, con un límite entre 11,50 $ y 11,90 $ por unidad (retorno del 15-19%)
- Exposición a la baja de 1 a 1 con el principal totalmente en riesgo
- No se espera cotización en bolsa ni mercado secundario
Los riesgos clave incluyen: posible pérdida del principal, riesgo crediticio de RBC, rendimientos limitados, exposición cambiaria a la zona euro y liquidez limitada. Las notas ofrecen un potencial de ganancia aumentado pero exponen a los inversores a todo el riesgo a la baja. El precio de la oferta pública será superior al valor estimado inicialmente y los retornos podrían ser menores que invertir directamente en los componentes del índice.
로열 뱅크 오브 캐나다는 14개월 만기 EURO STOXX 50 지수 연계 가속 수익 노트(ARN)를 제공합니다. 각 단위는 10.00달러의 원금을 가지며 주요 특징은 다음과 같습니다:
- 지수 상승에 대해 3대1 상승 노출(300% 참여율), 단위당 11.50~11.90달러로 상한 설정 (15~19% 수익)
- 1대1 하락 노출, 원금 전액 위험 부담
- 거래소 상장 및 2차 시장은 예상되지 않음
주요 위험 요소로는 원금 손실 가능성, RBC 신용 위험, 수익 상한, 유로존 통화 노출, 제한된 유동성이 있습니다. 이 노트는 향상된 상승 잠재력을 제공하지만 투자자에게 전면적인 하락 위험을 노출합니다. 공개 발행 가격은 초기 예상 가치보다 높으며, 수익률은 지수 구성 종목에 직접 투자하는 것보다 낮을 수 있습니다.
Royal Bank of Canada propose des Notes à Rendement Accéléré (ARN) liées à l'indice EURO STOXX 50 avec une durée de 14 mois. Chaque unité a un montant principal de 10,00 $ avec les caractéristiques clés suivantes :
- Exposition à la hausse à un ratio de 3 pour 1 (taux de participation de 300 %) aux augmentations de l'indice, plafonnée entre 11,50 $ et 11,90 $ par unité (rendement de 15 à 19 %)
- Exposition à la baisse à un ratio de 1 pour 1 avec principal entièrement à risque
- Pas de cotation en bourse ni de marché secondaire attendu
Les principaux risques incluent : perte potentielle du principal, risque de crédit de RBC, rendements plafonnés, exposition monétaire à la zone euro et liquidité limitée. Ces notes offrent un potentiel de hausse accru mais exposent les investisseurs à un risque total à la baisse. Le prix d'offre publique sera supérieur à la valeur initialement estimée, et les rendements pourraient être inférieurs à ceux d'un investissement direct dans les composants de l'indice.
Royal Bank of Canada bietet beschleunigte Renditenoten (ARNs) an, die an den EURO STOXX 50 Index mit einer Laufzeit von 14 Monaten gekoppelt sind. Jede Einheit hat einen Nominalbetrag von 10,00 $ mit folgenden Hauptmerkmalen:
- 3-zu-1 Aufwärtsbeteiligung (300% Partizipationsrate) an Indexsteigerungen, begrenzt auf 11,50 $ bis 11,90 $ pro Einheit (15-19% Rendite)
- 1-zu-1 Abwärtsbeteiligung mit vollem Kapitalschutzrisiko
- Keine Börsennotierung oder Sekundärmarkt erwartet
Wesentliche Risiken umfassen: potenzieller Kapitalverlust, Kreditrisiko von RBC, begrenzte Renditen, Währungsrisiko gegenüber der Eurozone und eingeschränkte Liquidität. Die Notes bieten ein erhöhtes Aufwärtspotenzial, setzen Anleger jedoch dem vollen Abwärtsrisiko aus. Der öffentliche Ausgabepreis wird den anfänglich geschätzten Wert übersteigen, und die Renditen könnten geringer ausfallen als bei einer direkten Investition in die Indexbestandteile.
Registration
Statement No. 333-275898
Filed Pursuant to Rule 433
| ACCELERATED RETURN NOTES® (ARNs®) |
| Accelerated Return Notes® Linked to the EURO STOXX 50® Index | |
| 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 14 months |
| Market Measure | The EURO STOXX 50® Index (Bloomberg symbol: “SX5E”) |
| Payout Profile at Maturity |
· 3-to-1 upside exposure to increases in the Market Measure, subject to the Capped Value · 1-to-1 downside exposure to decreases in the Market Measure, with 100% of your principal at risk |
| Capped Value | [$11.50 to $11.90] per unit, a return of [15.00% to 19.00%] over the principal amount, to be determined on the pricing date |
| Participation Rate | 300% |
| Preliminary Offering Documents | https://www.sec.gov/Archives/edgar/data/1000275/000095010325007843/dp230534_424b2-mlach.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. |
| · | 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 to the return represented by the Capped Value and may be less than a comparable investment directly in the securities included in the Market Measure. |
| · | 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 Market Measure), 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. |
| · | The Market Measure sponsor may adjust the Market Measure in a way that affects its level, and has no obligation to consider your interests. |
| · | You will have no rights of a holder of the securities included in the Market Measure, 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 Market Measure, 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 within the Eurozone. |
| · | 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.
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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% | $0.00 | -100.00% |
| -50.00% | $5.00 | -50.00% |
| -20.00% | $8.00 | -20.00% |
| -10.00% | $9.00 | -10.00% |
| -6.00% | $9.40 | -6.00% |
| -3.00% | $9.70 | -3.00% |
| 0.00% | $10.00 | 0.00% |
| 2.00% | $10.60 | 6.00% |
| 3.00% | $10.90 | 9.00% |
| 5.00% | $11.50 | 15.00% |
| 5.67% | $11.70(1) | 17.00% |
| 10.00% | $11.70 | 17.00% |
| 20.00% | $11.70 | 17.00% |
| 30.00% | $11.70 | 17.00% |
| 50.00% | $11.70 | 17.00% |
| 100.00% | $11.70 | 17.00% |
| (1) | The Redemption Amount per unit cannot exceed the hypothetical 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 RY's Accelerated Return Notes (ARNs) linked to EURO STOXX 50 offering in June 2025?
What is the maximum return potential for RY's EURO STOXX 50 linked ARNs?
What are the key risks of investing in RY's EURO STOXX 50 linked ARNs?
How does the payment structure work for RY's EURO STOXX 50 linked ARNs at maturity?
Will RY's EURO STOXX 50 linked ARNs be listed on an exchange?
