[FWP] Royal Bank of Canada Free Writing Prospectus
Royal Bank of Canada (RY) has filed a Free Writing Prospectus for an issuance of Market-Linked Securities—Auto-Callable with Contingent Coupon and Contingent Downside Principal at Risk maturing on 21 July 2028. The $1,000-denominated notes are linked to the worst performer among Goldman Sachs (GS), Meta Platforms (META) and Exxon Mobil (XOM).
Key structural terms: investors may receive a quarterly contingent coupon of at least 21% p.a. when the lowest-performing stock closes at or above 70% of its starting value. From January 2026 through April 2028 the notes are auto-callable at par plus the current coupon if the worst performer is at or above its starting value on any calculation day. If not called, principal is protected only down to the 70% downside threshold; below that level, repayment is reduced one-for-one with the worst performer’s decline, exposing investors to a potential 100% loss of capital.
Pricing considerations: the issuer’s estimated initial value is $910-$960 (9-4% discount to issue price), reflecting agent fees of up to 2.325% and dealer concessions. Secondary market liquidity is expected to be limited and pricing will be sensitive to equity volatility, dividends, credit spreads and correlation among the three underlyings.
Principal risks include full downside exposure beyond the 30% buffer, possibility of no coupons, reinvestment risk if early called, RBC credit risk, complex tax treatment and potential conflicts of interest with the calculation agent (RBCCM). The product does not participate in any upside of the underlying stocks.
These notes may appeal to investors seeking elevated income and willing to assume equity, issuer-credit and structural risks in exchange for high contingent coupons and a conditional 30% buffer.
Royal Bank of Canada (RY) ha presentato un Free Writing Prospectus per l'emissione di Market-Linked Securities—Auto-Callable con Cedola Contingente e Principale a Rischio Contingente con scadenza il 21 luglio 2028. Le obbligazioni denominate $1.000 sono collegate al titolo peggiore tra Goldman Sachs (GS), Meta Platforms (META) ed Exxon Mobil (XOM).
Termini strutturali chiave: gli investitori possono ricevere una cedola contingente trimestrale di almeno il 21% annuo se il titolo con la performance peggiore chiude a o sopra il 70% del valore iniziale. Da gennaio 2026 ad aprile 2028, le obbligazioni sono auto-rimborsabili a valore nominale più la cedola corrente se il titolo peggiore si trova a o sopra il valore iniziale in una qualsiasi data di calcolo. Se non richiamate, il capitale è protetto solo fino alla soglia di ribasso del 70%; al di sotto di questo livello, il rimborso si riduce in modo proporzionale al calo del titolo peggiore, esponendo gli investitori a una possibile perdita totale del capitale.
Considerazioni sul prezzo: il valore iniziale stimato dall'emittente è tra $910 e $960 (sconto del 9-4% rispetto al prezzo di emissione), includendo commissioni agenti fino al 2,325% e concessioni ai dealer. La liquidità sul mercato secondario è prevista limitata e i prezzi saranno sensibili alla volatilità azionaria, ai dividendi, agli spread di credito e alla correlazione tra i tre sottostanti.
Principali rischi includono l’esposizione completa al ribasso oltre la soglia del 30%, la possibilità di non ricevere cedole, il rischio di reinvestimento in caso di richiamo anticipato, il rischio di credito di RBC, un trattamento fiscale complesso e potenziali conflitti di interesse con l’agente di calcolo (RBCCM). Il prodotto non partecipa all’eventuale rialzo dei titoli sottostanti.
Questi titoli possono interessare investitori che cercano un reddito elevato e sono disposti ad assumersi rischi azionari, di credito dell’emittente e strutturali in cambio di cedole contingenti elevate e di una protezione condizionata del 30%.
Royal Bank of Canada (RY) ha presentado un Free Writing Prospectus para la emisión de Valores Vinculados al Mercado—Auto-Callable con Cupón Contingente y Principal en Riesgo Contingente con vencimiento el 21 de julio de 2028. Los bonos denominados en $1,000 están vinculados al peor desempeño entre Goldman Sachs (GS), Meta Platforms (META) y Exxon Mobil (XOM).
Términos estructurales clave: los inversores pueden recibir un cupón contingente trimestral de al menos 21% anual cuando la acción con peor desempeño cierre en o por encima del 70% de su valor inicial. Desde enero de 2026 hasta abril de 2028, los bonos son auto-llamables al valor nominal más el cupón vigente si el peor desempeño está en o por encima del valor inicial en cualquier día de cálculo. Si no se llaman, el principal está protegido solo hasta el umbral de caída del 70%; por debajo de ese nivel, el reembolso se reduce uno a uno con la caída del peor desempeño, exponiendo a los inversores a una posible pérdida total del capital.
Consideraciones de precio: el valor inicial estimado por el emisor es entre $910 y $960 (descuento del 9-4% respecto al precio de emisión), reflejando comisiones de agentes de hasta 2.325% y concesiones a distribuidores. Se espera que la liquidez en el mercado secundario sea limitada y la valoración será sensible a la volatilidad de acciones, dividendos, spreads de crédito y correlación entre los tres activos subyacentes.
Riesgos principales incluyen la exposición total a la baja más allá del margen del 30%, posibilidad de no recibir cupones, riesgo de reinversión si se llama anticipadamente, riesgo crediticio de RBC, tratamiento fiscal complejo y posibles conflictos de interés con el agente de cálculo (RBCCM). El producto no participa en la subida de las acciones subyacentes.
Estos bonos pueden atraer a inversores que buscan ingresos elevados y están dispuestos a asumir riesgos de acciones, crédito del emisor y estructurales a cambio de cupones contingentes altos y un margen condicional del 30%.
Royal Bank of Canada (RY)는 시장 연동 증권—조건부 쿠폰 및 조건부 하락 원금 위험이 있는 자동 콜 가능 상품에 대한 Free Writing Prospectus를 제출했으며, 만기는 2028년 7월 21일입니다. 1,000달러 단위의 이 노트는 Goldman Sachs (GS), Meta Platforms (META), Exxon Mobil (XOM) 중 최저 성과 주식에 연동됩니다.
주요 구조적 조건: 투자자는 최저 성과 주식이 시작 가치의 70% 이상으로 마감할 경우 분기별 최소 연 21%의 조건부 쿠폰을 받을 수 있습니다. 2026년 1월부터 2028년 4월까지 노트는 최저 성과 주식이 시작 가치 이상인 계산일에 명목가와 현재 쿠폰을 더한 금액으로 자동 콜 가능합니다. 콜되지 않을 경우, 원금은 70% 하락 한도까지 보호되며, 이 한도 아래에서는 최저 성과 주식의 하락률에 따라 원금 상환이 1:1로 감소하여 투자자는 최대 100% 원금 손실 위험에 노출됩니다.
가격 고려사항: 발행자의 추정 초기 가치는 $910-$960 (발행가 대비 9-4% 할인)로, 최대 2.325%의 에이전트 수수료 및 딜러 할인이 반영되어 있습니다. 2차 시장 유동성은 제한적일 것으로 예상되며, 가격은 주식 변동성, 배당금, 신용 스프레드 및 세 기초 자산 간 상관관계에 민감하게 반응할 것입니다.
주요 위험으로는 30% 버퍼를 초과하는 하락 위험, 쿠폰 미지급 가능성, 조기 콜 시 재투자 위험, RBC 신용 위험, 복잡한 세무 처리 및 계산 대리인(RBCCM)과의 잠재적 이해 상충이 포함됩니다. 이 상품은 기초 주식의 상승에는 참여하지 않습니다.
이 노트는 높은 조건부 쿠폰과 조건부 30% 버퍼를 대가로 주식, 발행자 신용 및 구조적 위험을 감수할 의향이 있는 고수익 추구 투자자에게 적합할 수 있습니다.
Royal Bank of Canada (RY) a déposé un Free Writing Prospectus pour une émission de titres liés au marché – auto-remboursables avec coupon conditionnel et principal à risque conditionnel arrivant à échéance le 21 juillet 2028. Les billets libellés en 1 000 $ sont liés à la performance la plus faible parmi Goldman Sachs (GS), Meta Platforms (META) et Exxon Mobil (XOM).
Principaux termes structurels : les investisseurs peuvent recevoir un coupon conditionnel trimestriel d'au moins 21% par an lorsque l'action la moins performante clôture à ou au-dessus de 70% de sa valeur initiale. De janvier 2026 à avril 2028, les billets sont auto-remboursables à leur valeur nominale plus le coupon courant si la moins bonne performance est égale ou supérieure à sa valeur initiale à une date de calcul. En cas de non rappel, le principal est protégé uniquement jusqu'au seuil de baisse de 70% ; en dessous de ce niveau, le remboursement est réduit au prorata de la baisse de la moins bonne performance, exposant les investisseurs à une perte potentielle totale du capital.
Considérations tarifaires : la valeur initiale estimée par l’émetteur se situe entre 910 $ et 960 $ (une décote de 9 à 4 % par rapport au prix d’émission), reflétant des frais d’agent allant jusqu’à 2,325 % et des concessions aux distributeurs. La liquidité sur le marché secondaire devrait être limitée, et la tarification sera sensible à la volatilité des actions, aux dividendes, aux spreads de crédit et à la corrélation entre les trois sous-jacents.
Risques principaux : ils comprennent une exposition complète à la baisse au-delà de la marge de 30 %, la possibilité de ne pas recevoir de coupons, le risque de réinvestissement en cas de rappel anticipé, le risque de crédit de RBC, un traitement fiscal complexe et des conflits d’intérêts potentiels avec l’agent de calcul (RBCCM). Le produit ne participe pas à la hausse des actions sous-jacentes.
Ces billets peuvent intéresser les investisseurs recherchant un revenu élevé et prêts à assumer des risques actions, de crédit de l’émetteur et structurels en échange de coupons conditionnels élevés et d’une protection conditionnelle de 30 %.
Royal Bank of Canada (RY) hat einen Free Writing Prospectus für die Emission von Marktgebundenen Wertpapieren – Auto-Callable mit bedingtem Kupon und bedingtem Kapitalrisiko eingereicht, mit Fälligkeit am 21. Juli 2028. Die auf 1.000 $ lautenden Notes sind an den schlechtesten Performer unter Goldman Sachs (GS), Meta Platforms (META) und Exxon Mobil (XOM) gekoppelt.
Wesentliche strukturelle Bedingungen: Investoren können einen vierteljährlichen bedingten Kupon von mindestens 21% p.a. erhalten, wenn die am schlechtesten performende Aktie am Bewertungstag bei mindestens 70% ihres Anfangswerts schließt. Von Januar 2026 bis April 2028 sind die Notes auto-callable zum Nennwert plus aktuellem Kupon, falls der schlechteste Performer an einem Berechnungstag mindestens auf seinem Anfangswert liegt. Werden sie nicht zurückgerufen, ist das Kapital nur bis zur 70%-Abschwungsschwelle geschützt; liegt der Kurs darunter, verringert sich die Rückzahlung eins zu eins mit dem Rückgang des schlechtesten Performers, wodurch Investoren einem Totalverlustrisiko ausgesetzt sind.
Preisüberlegungen: Der geschätzte Anfangswert des Emittenten liegt bei 910–960 $ (9–4% Abschlag auf den Ausgabepreis), was Agenturgebühren von bis zu 2,325% und Händleraufschläge berücksichtigt. Die Liquidität am Sekundärmarkt wird voraussichtlich begrenzt sein, und die Preisbildung ist sensitiv gegenüber Aktienvolatilität, Dividenden, Kreditspreads und Korrelationen der drei Basiswerte.
Hauptsächliche Risiken umfassen die volle Abwärtsrisikoexposition über die 30%-Schutzschwelle hinaus, das Risiko des Ausbleibens von Kuponzahlungen, Reinvestitionsrisiken bei vorzeitiger Rückzahlung, RBC-Kreditrisiko, komplexe steuerliche Behandlung und potenzielle Interessenkonflikte mit dem Berechnungsagenten (RBCCM). Das Produkt partizipiert nicht an Kurssteigerungen der zugrunde liegenden Aktien.
Diese Notes könnten für Anleger attraktiv sein, die eine hohe Rendite suchen und bereit sind, Aktien-, Emittenten-Kredit- und Struktur-Risiken im Austausch für hohe bedingte Kupons und einen bedingten 30%-Puffer zu tragen.
- Attractive contingent coupon: promised rate of at least 21% per annum, materially higher than investment-grade bond yields.
- Auto-call feature: potential early redemption at par plus coupon as soon as January 2026 if equities perform, enhancing annualized return.
- 30% downside buffer: conditional protection against moderate declines in the worst-performing underlying.
- Full downside beyond 30% buffer: investors can lose all principal if the worst performer is down >30% at maturity.
- No upside participation: return is capped at cumulative coupons; investors forgo stock appreciation.
- Credit risk: payments depend on Royal Bank of Canada’s ability to pay; notes are unsecured and not FDIC-insured.
- Illiquidity and valuation: secondary trading likely thin; issue priced 4-9% above estimated value.
- Complex tax treatment: U.S. federal income tax consequences are uncertain and may be unfavorable.
Insights
TL;DR – High coupon compensates for significant equity downside and issuer credit risk; overall risk-reward leans speculative.
The 21%+ contingent coupon is attractive but only pays when the weakest of GS, META or XOM is above its 70% coupon threshold. Historical back-testing shows technology and energy stocks can be volatile, so missed coupons are likely in stressed markets. The 30% buffer is modest for a 3-year tenor and worst-of structure, meaning a single sharp drawdown can erase principal. Auto-call enhances IRR if markets are flat to mildly positive, but also truncates coupon stream, creating reinvestment risk. Pricing at 4-9% below par after fees indicates negative carry at inception. Investors must be comfortable marking this to market without a liquid secondary, with values driven primarily by implied vol, dividend expectations and RBC CDS spreads. Overall, suitable only for yield-focused accounts that understand downside and tax complexity.
TL;DR – Note performance ultimately hinges on RBC’s AA- credit; default would leave holders as unsecured creditors.
Although RBC carries high-grade ratings (Moody’s Aa2/S&P AA-), the notes are senior unsecured obligations. Investors face extension and recovery risk if the bank’s condition deteriorates over the next three years. The estimated value discount embeds RBC funding spread; any widening could pressure secondary pricing even if equities rally. While RBC’s capitalization and liquidity are strong, regulatory changes or Canadian housing exposure could affect spreads. From a credit standpoint, risk is moderate, aligning with broad money-center bank peers, but not negligible given the high-beta equity exposure also influences investor sentiment toward structured notes.
Royal Bank of Canada (RY) ha presentato un Free Writing Prospectus per l'emissione di Market-Linked Securities—Auto-Callable con Cedola Contingente e Principale a Rischio Contingente con scadenza il 21 luglio 2028. Le obbligazioni denominate $1.000 sono collegate al titolo peggiore tra Goldman Sachs (GS), Meta Platforms (META) ed Exxon Mobil (XOM).
Termini strutturali chiave: gli investitori possono ricevere una cedola contingente trimestrale di almeno il 21% annuo se il titolo con la performance peggiore chiude a o sopra il 70% del valore iniziale. Da gennaio 2026 ad aprile 2028, le obbligazioni sono auto-rimborsabili a valore nominale più la cedola corrente se il titolo peggiore si trova a o sopra il valore iniziale in una qualsiasi data di calcolo. Se non richiamate, il capitale è protetto solo fino alla soglia di ribasso del 70%; al di sotto di questo livello, il rimborso si riduce in modo proporzionale al calo del titolo peggiore, esponendo gli investitori a una possibile perdita totale del capitale.
Considerazioni sul prezzo: il valore iniziale stimato dall'emittente è tra $910 e $960 (sconto del 9-4% rispetto al prezzo di emissione), includendo commissioni agenti fino al 2,325% e concessioni ai dealer. La liquidità sul mercato secondario è prevista limitata e i prezzi saranno sensibili alla volatilità azionaria, ai dividendi, agli spread di credito e alla correlazione tra i tre sottostanti.
Principali rischi includono l’esposizione completa al ribasso oltre la soglia del 30%, la possibilità di non ricevere cedole, il rischio di reinvestimento in caso di richiamo anticipato, il rischio di credito di RBC, un trattamento fiscale complesso e potenziali conflitti di interesse con l’agente di calcolo (RBCCM). Il prodotto non partecipa all’eventuale rialzo dei titoli sottostanti.
Questi titoli possono interessare investitori che cercano un reddito elevato e sono disposti ad assumersi rischi azionari, di credito dell’emittente e strutturali in cambio di cedole contingenti elevate e di una protezione condizionata del 30%.
Royal Bank of Canada (RY) ha presentado un Free Writing Prospectus para la emisión de Valores Vinculados al Mercado—Auto-Callable con Cupón Contingente y Principal en Riesgo Contingente con vencimiento el 21 de julio de 2028. Los bonos denominados en $1,000 están vinculados al peor desempeño entre Goldman Sachs (GS), Meta Platforms (META) y Exxon Mobil (XOM).
Términos estructurales clave: los inversores pueden recibir un cupón contingente trimestral de al menos 21% anual cuando la acción con peor desempeño cierre en o por encima del 70% de su valor inicial. Desde enero de 2026 hasta abril de 2028, los bonos son auto-llamables al valor nominal más el cupón vigente si el peor desempeño está en o por encima del valor inicial en cualquier día de cálculo. Si no se llaman, el principal está protegido solo hasta el umbral de caída del 70%; por debajo de ese nivel, el reembolso se reduce uno a uno con la caída del peor desempeño, exponiendo a los inversores a una posible pérdida total del capital.
Consideraciones de precio: el valor inicial estimado por el emisor es entre $910 y $960 (descuento del 9-4% respecto al precio de emisión), reflejando comisiones de agentes de hasta 2.325% y concesiones a distribuidores. Se espera que la liquidez en el mercado secundario sea limitada y la valoración será sensible a la volatilidad de acciones, dividendos, spreads de crédito y correlación entre los tres activos subyacentes.
Riesgos principales incluyen la exposición total a la baja más allá del margen del 30%, posibilidad de no recibir cupones, riesgo de reinversión si se llama anticipadamente, riesgo crediticio de RBC, tratamiento fiscal complejo y posibles conflictos de interés con el agente de cálculo (RBCCM). El producto no participa en la subida de las acciones subyacentes.
Estos bonos pueden atraer a inversores que buscan ingresos elevados y están dispuestos a asumir riesgos de acciones, crédito del emisor y estructurales a cambio de cupones contingentes altos y un margen condicional del 30%.
Royal Bank of Canada (RY)는 시장 연동 증권—조건부 쿠폰 및 조건부 하락 원금 위험이 있는 자동 콜 가능 상품에 대한 Free Writing Prospectus를 제출했으며, 만기는 2028년 7월 21일입니다. 1,000달러 단위의 이 노트는 Goldman Sachs (GS), Meta Platforms (META), Exxon Mobil (XOM) 중 최저 성과 주식에 연동됩니다.
주요 구조적 조건: 투자자는 최저 성과 주식이 시작 가치의 70% 이상으로 마감할 경우 분기별 최소 연 21%의 조건부 쿠폰을 받을 수 있습니다. 2026년 1월부터 2028년 4월까지 노트는 최저 성과 주식이 시작 가치 이상인 계산일에 명목가와 현재 쿠폰을 더한 금액으로 자동 콜 가능합니다. 콜되지 않을 경우, 원금은 70% 하락 한도까지 보호되며, 이 한도 아래에서는 최저 성과 주식의 하락률에 따라 원금 상환이 1:1로 감소하여 투자자는 최대 100% 원금 손실 위험에 노출됩니다.
가격 고려사항: 발행자의 추정 초기 가치는 $910-$960 (발행가 대비 9-4% 할인)로, 최대 2.325%의 에이전트 수수료 및 딜러 할인이 반영되어 있습니다. 2차 시장 유동성은 제한적일 것으로 예상되며, 가격은 주식 변동성, 배당금, 신용 스프레드 및 세 기초 자산 간 상관관계에 민감하게 반응할 것입니다.
주요 위험으로는 30% 버퍼를 초과하는 하락 위험, 쿠폰 미지급 가능성, 조기 콜 시 재투자 위험, RBC 신용 위험, 복잡한 세무 처리 및 계산 대리인(RBCCM)과의 잠재적 이해 상충이 포함됩니다. 이 상품은 기초 주식의 상승에는 참여하지 않습니다.
이 노트는 높은 조건부 쿠폰과 조건부 30% 버퍼를 대가로 주식, 발행자 신용 및 구조적 위험을 감수할 의향이 있는 고수익 추구 투자자에게 적합할 수 있습니다.
Royal Bank of Canada (RY) a déposé un Free Writing Prospectus pour une émission de titres liés au marché – auto-remboursables avec coupon conditionnel et principal à risque conditionnel arrivant à échéance le 21 juillet 2028. Les billets libellés en 1 000 $ sont liés à la performance la plus faible parmi Goldman Sachs (GS), Meta Platforms (META) et Exxon Mobil (XOM).
Principaux termes structurels : les investisseurs peuvent recevoir un coupon conditionnel trimestriel d'au moins 21% par an lorsque l'action la moins performante clôture à ou au-dessus de 70% de sa valeur initiale. De janvier 2026 à avril 2028, les billets sont auto-remboursables à leur valeur nominale plus le coupon courant si la moins bonne performance est égale ou supérieure à sa valeur initiale à une date de calcul. En cas de non rappel, le principal est protégé uniquement jusqu'au seuil de baisse de 70% ; en dessous de ce niveau, le remboursement est réduit au prorata de la baisse de la moins bonne performance, exposant les investisseurs à une perte potentielle totale du capital.
Considérations tarifaires : la valeur initiale estimée par l’émetteur se situe entre 910 $ et 960 $ (une décote de 9 à 4 % par rapport au prix d’émission), reflétant des frais d’agent allant jusqu’à 2,325 % et des concessions aux distributeurs. La liquidité sur le marché secondaire devrait être limitée, et la tarification sera sensible à la volatilité des actions, aux dividendes, aux spreads de crédit et à la corrélation entre les trois sous-jacents.
Risques principaux : ils comprennent une exposition complète à la baisse au-delà de la marge de 30 %, la possibilité de ne pas recevoir de coupons, le risque de réinvestissement en cas de rappel anticipé, le risque de crédit de RBC, un traitement fiscal complexe et des conflits d’intérêts potentiels avec l’agent de calcul (RBCCM). Le produit ne participe pas à la hausse des actions sous-jacentes.
Ces billets peuvent intéresser les investisseurs recherchant un revenu élevé et prêts à assumer des risques actions, de crédit de l’émetteur et structurels en échange de coupons conditionnels élevés et d’une protection conditionnelle de 30 %.
Royal Bank of Canada (RY) hat einen Free Writing Prospectus für die Emission von Marktgebundenen Wertpapieren – Auto-Callable mit bedingtem Kupon und bedingtem Kapitalrisiko eingereicht, mit Fälligkeit am 21. Juli 2028. Die auf 1.000 $ lautenden Notes sind an den schlechtesten Performer unter Goldman Sachs (GS), Meta Platforms (META) und Exxon Mobil (XOM) gekoppelt.
Wesentliche strukturelle Bedingungen: Investoren können einen vierteljährlichen bedingten Kupon von mindestens 21% p.a. erhalten, wenn die am schlechtesten performende Aktie am Bewertungstag bei mindestens 70% ihres Anfangswerts schließt. Von Januar 2026 bis April 2028 sind die Notes auto-callable zum Nennwert plus aktuellem Kupon, falls der schlechteste Performer an einem Berechnungstag mindestens auf seinem Anfangswert liegt. Werden sie nicht zurückgerufen, ist das Kapital nur bis zur 70%-Abschwungsschwelle geschützt; liegt der Kurs darunter, verringert sich die Rückzahlung eins zu eins mit dem Rückgang des schlechtesten Performers, wodurch Investoren einem Totalverlustrisiko ausgesetzt sind.
Preisüberlegungen: Der geschätzte Anfangswert des Emittenten liegt bei 910–960 $ (9–4% Abschlag auf den Ausgabepreis), was Agenturgebühren von bis zu 2,325% und Händleraufschläge berücksichtigt. Die Liquidität am Sekundärmarkt wird voraussichtlich begrenzt sein, und die Preisbildung ist sensitiv gegenüber Aktienvolatilität, Dividenden, Kreditspreads und Korrelationen der drei Basiswerte.
Hauptsächliche Risiken umfassen die volle Abwärtsrisikoexposition über die 30%-Schutzschwelle hinaus, das Risiko des Ausbleibens von Kuponzahlungen, Reinvestitionsrisiken bei vorzeitiger Rückzahlung, RBC-Kreditrisiko, komplexe steuerliche Behandlung und potenzielle Interessenkonflikte mit dem Berechnungsagenten (RBCCM). Das Produkt partizipiert nicht an Kurssteigerungen der zugrunde liegenden Aktien.
Diese Notes könnten für Anleger attraktiv sein, die eine hohe Rendite suchen und bereit sind, Aktien-, Emittenten-Kredit- und Struktur-Risiken im Austausch für hohe bedingte Kupons und einen bedingten 30%-Puffer zu tragen.
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Royal Bank of Canada Market Linked Securities |
Filed Pursuant to Rule 433 Registration Statement No. 333-275898
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Market Linked Securities—Auto-Callable with Contingent Coupon and Contingent Downside Principal at Risk Securities Linked to the Lowest Performing of the Common Stock of The Goldman Sachs Group, Inc., the Class A Common Stock of Meta Platforms, Inc. and the Common Stock of Exxon Mobil Corporation due July 21, 2028 Term Sheet dated June 30, 2025 |
Summary of Terms
| Issuer: | Royal Bank of Canada |
| Market Measures: | The common stock of The Goldman Sachs Group, Inc. (the “GS Stock”), the Class A common stock of Meta Platforms, Inc. (the “META Stock”) and the common stock of Exxon Mobil Corporation. (the “XOM Stock”) (each referred to as an “Underlying Stock,” and collectively as the “Underlying Stocks”) |
| Pricing Date: | July 18, 2025 |
| Issue Date: | July 23, 2025 |
| Final Calculation Day: | July 18, 2028 |
| Stated Maturity Date: | July 21, 2028 |
| Face Amount: | $1,000 per security |
| Contingent Coupon Payment: | On each contingent coupon payment date, you will receive a contingent coupon payment at a per annum rate equal to the contingent coupon rate if the closing value of the lowest performing Underlying Stock on the related calculation day is greater than or equal to its coupon threshold value. Each “contingent coupon payment,” if any, will be calculated per security as follows: ($1,000 × contingent coupon rate)/4. |
| Contingent Coupon Payment Dates: | Quarterly, on the third business day following each calculation day, provided that the contingent coupon payment date with respect to the final calculation day will be the stated maturity date |
| Contingent Coupon Rate: | At least 21.00% per annum, to be determined on the pricing date |
| Automatic Call: | If the closing value of the lowest performing Underlying Stock on any of the calculation days scheduled to occur from January 2026 to April 2028, inclusive, is greater than or equal to its starting value, the securities will be automatically called, and on the related call settlement date you will be entitled to receive a cash payment per security in U.S. dollars equal to the face amount plus a final contingent coupon payment. |
| Calculation Days: | Quarterly, on the 18th day of each January, April, July and October, commencing October 2025 and ending July 2028, provided that the July 2028 calculation day will be the final calculation day |
| Call Settlement Date: | The contingent coupon payment date immediately following the applicable calculation day |
| Maturity Payment Amount, if the Securities Are Not Automatically Called (per Security): |
· if the ending value of the lowest performing Underlying Stock on the final calculation day is greater than or equal to its downside threshold value: $1,000; or · if the ending value of the lowest performing Underlying Stock on the final calculation day is less than its downside threshold value: $1,000 × performance factor of the lowest performing Underlying Stock on the final calculation day |
| Lowest Performing Underlying Stock: | For any calculation day, the Underlying Stock with the lowest performance factor on that calculation day |
| Performance Factor: | With respect to an Underlying Stock on any calculation day, its closing value on that calculation day divided by its starting value (expressed as a percentage) |
| Starting Value: | For each Underlying Stock, its closing value on the pricing date |
| Ending Value: | For each Underlying Stock, its closing value on the final calculation day |
Summary of Terms (continued)
| Coupon Threshold Value: | For each Underlying Stock, 70% of its starting value |
| Downside Threshold Value: | For each Underlying Stock, 70% of its starting value |
| Calculation Agent: | RBC Capital Markets, LLC (“RBCCM”), an affiliate of the issuer |
| Denominations: | $1,000 and any integral multiple of $1,000 |
| Agent Discount: | Up to 2.325%; dealers, including those using the trade name Wells Fargo Advisors (“WFA”), may receive a selling concession of up to 1.75% and WFS may pay 0.075% of the agent’s discount to WFA as a distribution expense fee. In addition, selected dealers may receive a fee of up to 0.20% for marketing and other services |
| CUSIP: | 78017PCF6 |
Hypothetical Payout Profile (maturity payment amount)
If the securities are not automatically called prior to stated maturity and the ending value of the lowest performing Underlying Stock on the final calculation day is less than its downside threshold value, you will have full downside exposure to the decrease in the value of that Underlying Stock from its starting value, and you will lose more than 30%, and possibly all, of the face amount of your securities at maturity.
Any return on the securities will be limited to the sum of your contingent coupon payments, if any. You will not participate in any appreciation of any Underlying Stock, but you will have full downside exposure to the lowest performing Underlying Stock on the final calculation day if its ending value is less than its downside threshold value.
The issuer’s initial estimated value of the securities as of the pricing date is expected to be between $910.00 and $960.00 per $1,000 in principal amount, which is less than the public offering price. The final pricing supplement relating to the securities will set forth the issuer’s estimate of the initial value of the securities as of the pricing date. The market value of the securities at any time will reflect many factors, cannot be predicted with accuracy, and may be less than this amount. See “Estimated Value of the Securities” in the accompanying preliminary pricing supplement for further information.
Preliminary Pricing Supplement:
https://www.sec.gov/Archives/edgar/data/1000275/000095010325008071/dp230707_424b2-wfceln322.htm
The securities have complex features and investing in the securities involves risks not associated with an investment in conventional debt securities. See “Selected Risk Considerations” in this term sheet and the accompanying preliminary pricing supplement and “Risk Factors” in the accompanying product supplement.
This introductory term sheet does not provide all of the information that an investor should consider prior to making an investment decision.
Investors should carefully review the accompanying preliminary pricing supplement, product supplement, prospectus supplement and prospectus before making a decision to invest in the securities.
NOT A BANK DEPOSIT AND NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY
Selected Risk Considerations
The risks set forth below are discussed in detail in the “Selected Risk Considerations” section in the accompanying preliminary pricing supplement and the “Risk Factors” section in the accompanying product supplement. Please review those risk disclosures carefully.
Risks Relating To The Terms And Structure Of The Securities
| · | If The Securities Are Not Automatically Called Prior To Stated Maturity, You May Lose Some Or All Of The Face Amount Of Your Securities At Stated Maturity. |
| · | The Securities Do Not Provide For Fixed Payments Of Interest And You May Receive No Contingent Coupon Payments On One Or More Contingent Coupon Payment Dates, Or Even Throughout The Entire Term Of The Securities. |
| · | The Securities Are Subject To The Full Downside Risks Of Each Underlying Stock And Will Be Negatively Affected If Any Underlying Stock Performs Poorly, Even If The Other Underlying Stocks Perform Favorably. |
| · | Your Return On The Securities Will Depend Solely On The Performance Of The Underlying Stock That Is The Lowest Performing Underlying Stock On Each Calculation Day, And You Will Not Benefit In Any Way From The Performance Of The Better Performing Underlying Stocks. |
| · | You Will Be Subject To Risks Resulting From The Relationship Among The Underlying Stocks. |
| · | You May Be Fully Exposed To The Decline In The Lowest Performing Underlying Stock On The Final Calculation Day From Its Starting Value, But Will Not Participate In Any Positive Performance Of Any Underlying Stock. |
| · | Higher Contingent Coupon Rates Are Associated With Greater Risk. |
| · | You Will Be Subject To Reinvestment Risk. |
| · | A Contingent Coupon Payment Date, A Call Settlement Date Or The Stated Maturity Date May Be Postponed If A Calculation Day Is Postponed. |
| · | Payments On The Securities Are Subject To Our Credit Risk, And Market Perceptions About Our Creditworthiness May Adversely Affect The Market Value Of The Securities. |
| · | The U.S. Federal Income Tax Consequences Of An Investment In The Securities Are Uncertain. |
Risks Relating To The Estimated Value Of The Securities And Any Secondary Market
| · | There May Not Be An Active Trading Market For The Securities And Sales In The Secondary Market May Result In Significant Losses. |
| · | The Initial Estimated Value Of The Securities Will Be Less Than The Original Offering Price. |
| · | The Initial Estimated Value Of The Securities Is Only An Estimate, Calculated As Of The Time The Terms Of The Securities Are Set. |
| · | The Value Of The Securities Prior To Stated Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways. |
Risks Relating To Conflicts Of Interest
| · | Our Economic Interests And Those Of Any Dealer Participating In The Offering Are Potentially Adverse To Your Interests. |
Risks Relating To The Underlying Stocks
| · | Investing In The Securities Is Not The Same As Investing In The Underlying Stocks. |
| · | Historical Values Of An Underlying Stock Should Not Be Taken As An Indication Of Its Future Performance During The Term Of The Securities. |
| · | The Securities May Become Linked To The Common Stock Of A Company Other Than The Original Underlying Stock Issuers. |
| · | We Cannot Control Actions By The Underlying Stock Issuers. |
| · | We And Our Affiliates Have No Affiliation With Any Underlying Stock Issuer And Have Not Independently Verified Its Public Disclosure Of Information. |
| · | You Have Limited Anti-dilution Protection. |
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling your financial advisor or by calling Royal Bank of Canada toll-free at 1-877-688-2301.
As used in this term sheet, “Royal Bank of Canada,” “we,” “our” and “us” mean only Royal Bank of Canada. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
FAQ
What is the contingent coupon rate on Royal Bank of Canada’s 2028 market-linked securities?
When can the RY auto-callable notes be redeemed early?
What happens if the worst underlying stock falls below 70% at maturity?
Which stocks determine performance of these Royal Bank of Canada notes?
How does the initial estimated value compare to the offering price?
