[FWP] Royal Bank of Canada Free Writing Prospectus
Royal Bank of Canada (RY) has filed a Free Writing Prospectus for “Barrier Digital Notes” maturing 1 August 2030. The $1,000-denominated notes are linked to the iShares MSCI Emerging Markets ex-China ETF (EMXC) and the EURO STOXX 50 Index (SX5E). At maturity, the payout depends on the Least Performing Underlier:
- Upside: If the final value of the worst-performing underlier is ≥ its initial level, investors receive the greater of (a) the underlier’s total return or (b) a fixed 55 % “Digital Return.”
- Contingent principal protection: If the worst underlier ends between 70 % and 99.99 % of its initial level, principal is merely returned.
- Downside: If the worst underlier closes below 70 % of its initial value, holders lose 1 % of principal for every 1 % decline, up to total loss.
Key dates are Trade Date 28 Jul 2025, Valuation Date 29 Jul 2030 and Maturity 1 Aug 2030. The initial estimated value is $878–$928 per $1,000—well below the public offering price, reflecting distributor compensation and hedging costs. The notes pay no coupon, are unsecured, and carry RBC credit risk. Extensive risk factors cite market volatility, emerging-market exposure, currency dynamics, lack of secondary liquidity, potential conflicts of interest, tax uncertainty and the possibility of accelerated redemption upon regulatory changes.
Overall, the instrument offers leveraged upside up to a 55 % digital cap with conditional downside protection, but investors face meaningful principal risk, illiquidity and valuation drag versus direct ETF or index exposure.
Royal Bank of Canada (RY) ha presentato un Free Writing Prospectus per le “Barrier Digital Notes” con scadenza il 1° agosto 2030. Le obbligazioni denominate $1.000 sono collegate all’iShares MSCI Emerging Markets ex-China ETF (EMXC) e all’EURO STOXX 50 Index (SX5E). Alla scadenza, il pagamento dipende dal Least Performing Underlier:
- Rendimento positivo: Se il valore finale dell’underlier peggiore è ≥ al suo livello iniziale, gli investitori ricevono il maggiore tra (a) il rendimento totale dell’underlier o (b) un “Rendimento Digitale” fisso del 55%.
- Protezione condizionata del capitale: Se l’underlier peggiore termina tra il 70% e il 99,99% del suo livello iniziale, viene restituito solo il capitale.
- Rischio al ribasso: Se l’underlier peggiore chiude al di sotto del 70% del valore iniziale, i detentori perdono l’1% del capitale per ogni 1% di calo, fino alla perdita totale.
Le date chiave sono: Data di negoziazione 28 luglio 2025, Data di valutazione 29 luglio 2030 e Scadenza 1 agosto 2030. Il valore stimato iniziale è tra $878 e $928 per ogni $1.000—ben al di sotto del prezzo di offerta pubblica, riflettendo la compensazione del distributore e i costi di copertura. Le note non pagano alcuna cedola, sono non garantite e comportano il rischio di credito di RBC. I fattori di rischio includono volatilità di mercato, esposizione ai mercati emergenti, dinamiche valutarie, mancanza di liquidità secondaria, potenziali conflitti di interesse, incertezza fiscale e possibilità di rimborso anticipato in caso di cambiamenti normativi.
In sintesi, lo strumento offre un potenziale di rendimento incrementato fino a un limite digitale del 55% con protezione condizionata al ribasso, ma gli investitori affrontano rischi significativi sul capitale, illiquidità e un valore inferiore rispetto all’esposizione diretta a ETF o indici.
Royal Bank of Canada (RY) ha presentado un Free Writing Prospectus para las “Barrier Digital Notes” con vencimiento el 1 de agosto de 2030. Los bonos denominados en $1,000 están vinculados al iShares MSCI Emerging Markets ex-China ETF (EMXC) y al EURO STOXX 50 Index (SX5E). Al vencimiento, el pago depende del Least Performing Underlier:
- Subida: Si el valor final del subyacente con peor desempeño es ≥ a su nivel inicial, los inversores reciben el mayor entre (a) el rendimiento total del subyacente o (b) un “Retorno Digital” fijo del 55%.
- Protección contingente del principal: Si el subyacente peor termina entre el 70% y el 99.99% de su nivel inicial, se devuelve únicamente el principal.
- Bajada: Si el subyacente peor cierra por debajo del 70% de su valor inicial, los tenedores pierden el 1% del principal por cada 1% de caída, hasta la pérdida total.
Las fechas clave son: Fecha de negociación 28 de julio de 2025, Fecha de valoración 29 de julio de 2030 y Vencimiento 1 de agosto de 2030. El valor estimado inicial es entre
En resumen, el instrumento ofrece un potencial de rendimiento apalancado hasta un tope digital del 55% con protección condicional a la baja, pero los inversores enfrentan riesgos significativos sobre el principal, iliquidez y un valor inferior en comparación con la exposición directa a ETFs o índices.
Royal Bank of Canada(RY)는 2030년 8월 1일 만기인 “Barrier Digital Notes”에 대한 Free Writing Prospectus를 제출했습니다. $1,000 단위로 발행되는 이 노트는 iShares MSCI Emerging Markets ex-China ETF (EMXC)와 EURO STOXX 50 Index (SX5E)에 연동되어 있습니다. 만기 시 지급액은 최저 성과 기초자산(Least Performing Underlier)에 따라 결정됩니다:
- 상승 시: 최저 성과 기초자산의 최종 가치가 초기 수준 이상이면, 투자자는 (a) 기초자산의 총 수익 또는 (b) 고정된 55% “디지털 수익” 중 더 큰 금액을 받습니다.
- 조건부 원금 보호: 최저 성과 기초자산이 초기 수준의 70%에서 99.99% 사이에 마감되면 원금만 반환됩니다.
- 하락 시: 최저 성과 기초자산이 초기 가치의 70% 미만으로 마감되면, 투자자는 1% 하락할 때마다 원금의 1%를 잃으며 최대 전액 손실까지 발생할 수 있습니다.
주요 일정은 거래일 2025년 7월 28일, 평가일 2030년 7월 29일, 만기일 2030년 8월 1일입니다. 초기 예상 가치는 $1,000당 $878–$928로, 공모가보다 훨씬 낮으며 유통사 보상 및 헤지 비용이 반영된 수치입니다. 이 노트는 쿠폰이 없으며, 무담보이고 RBC 신용 위험을 포함합니다. 위험 요소로는 시장 변동성, 신흥 시장 노출, 환율 변동, 2차 유동성 부족, 이해 상충 가능성, 세금 불확실성 및 규제 변경 시 조기 상환 가능성이 포함됩니다.
전반적으로 이 상품은 최대 55% 디지털 한도 내에서 레버리지 상승 잠재력과 조건부 하락 보호를 제공하지만, 투자자는 원금 손실 위험, 비유동성 및 ETF나 지수 직접 투자 대비 가치 하락 위험에 직면합니다.
La Royal Bank of Canada (RY) a déposé un Free Writing Prospectus pour des « Barrier Digital Notes » arrivant à échéance le 1er août 2030. Les notes libellées à 1 000 $ sont liées à l’iShares MSCI Emerging Markets ex-China ETF (EMXC) et à l’EURO STOXX 50 Index (SX5E). À l’échéance, le paiement dépend du Least Performing Underlier :
- Hausse : Si la valeur finale de l’actif sous-jacent le moins performant est ≥ à son niveau initial, les investisseurs reçoivent le plus élevé entre (a) le rendement total de l’actif sous-jacent ou (b) un « Rendement Digital » fixe de 55 %.
- Protection conditionnelle du capital : Si l’actif sous-jacent le moins performant termine entre 70 % et 99,99 % de son niveau initial, le capital est simplement remboursé.
- Baisse : Si l’actif sous-jacent le moins performant clôture en dessous de 70 % de sa valeur initiale, les détenteurs perdent 1 % du capital pour chaque 1 % de baisse, jusqu’à une perte totale.
Les dates clés sont : date de transaction le 28 juillet 2025, date d’évaluation le 29 juillet 2030 et échéance le 1er août 2030. La valeur estimée initiale est comprise entre 878 $ et 928 $ pour 1 000 $—bien en dessous du prix d’offre publique, reflétant la rémunération du distributeur et les coûts de couverture. Les notes ne versent aucun coupon, ne sont pas garanties et comportent un risque de crédit RBC. Les facteurs de risque incluent la volatilité du marché, l’exposition aux marchés émergents, les dynamiques monétaires, le manque de liquidité secondaire, les conflits d’intérêts potentiels, l’incertitude fiscale et la possibilité de remboursement anticipé en cas de changements réglementaires.
Dans l’ensemble, l’instrument offre un potentiel de hausse à effet de levier jusqu’à un plafond digital de 55 % avec une protection conditionnelle à la baisse, mais les investisseurs sont exposés à un risque significatif sur le capital, à l’illiquidité et à une décote par rapport à une exposition directe aux ETF ou aux indices.
Die Royal Bank of Canada (RY) hat einen Free Writing Prospectus für „Barrier Digital Notes“ mit Fälligkeit am 1. August 2030 eingereicht. Die auf $1.000 lautenden Notes sind an den iShares MSCI Emerging Markets ex-China ETF (EMXC) und den EURO STOXX 50 Index (SX5E) gekoppelt. Bei Fälligkeit hängt die Auszahlung vom Least Performing Underlier ab:
- Aufwärts: Wenn der Endwert des am schlechtesten performenden Underliers ≥ seinem Anfangswert ist, erhalten Anleger den höheren Wert von (a) der Gesamtrendite des Underliers oder (b) einer festen 55 % „Digital Return“.
- Bedingter Kapitalschutz: Wenn der schlechteste Underlier zwischen 70 % und 99,99 % seines Anfangswerts schließt, wird nur das Kapital zurückgezahlt.
- Abwärts: Schließt der schlechteste Underlier unter 70 % seines Anfangswerts, verlieren Inhaber 1 % des Kapitals für jeden 1 % Rückgang, bis zum Totalverlust.
Wichtige Termine sind Handelstag 28. Juli 2025, Bewertungsdatum 29. Juli 2030 und Fälligkeit 1. August 2030. Der anfängliche Schätzwert liegt bei
Insgesamt bietet das Instrument einen gehebelten Aufwärtsspielraum bis zu einem digitalen Cap von 55 % mit bedingtem Abwärtsschutz, jedoch stehen Anlegern erhebliche Kapitalrisiken, Illiquidität und ein Bewertungsabschlag gegenüber einer direkten ETF- oder Index-Exponierung gegenüber.
- 55 % fixed digital return if either underlier finishes at or above its initial level, offering enhanced upside versus direct index exposure in moderate rally scenarios.
- Contingent principal protection to a 70 % barrier provides limited downside buffer compared with direct equity investment.
- Exposure to two diversified underliers—emerging markets ex-China and Eurozone blue chips—may appeal to investors seeking geographic diversification.
- Issued by Royal Bank of Canada, a high investment-grade institution, reducing default probability versus lower-rated issuers.
- Capital at risk: A fall of more than 30 % in the worst underlier leads to 1-for-1 principal loss.
- No coupon payments; total return realized only at maturity, resulting in negative carry versus fixed-income alternatives.
- Initial estimated value ($878–$928) is materially below the $1,000 offering price, indicating embedded fees and negative yield-to-maturity if barrier is breached.
- Worst-of structure means performance of the better underlier is ignored if the other underperforms.
- Limited liquidity and potentially wide secondary-market spreads heighten exit-risk for investors before maturity.
- Uncertain U.S. tax treatment could result in less favorable taxation than conventional securities.
- Credit risk remains; payments rely solely on RBC’s ability to pay at maturity.
Insights
TL;DR: Routine RBC structured note, 55 % digital upside, 30 % barrier; principal at risk and initial value < offer price.
Payout profile: The note is essentially a worst-of basket with a digital kicker. The 55 % fixed return is attractive only if either underlying rises modestly; however, gains above 55 % are forfeited. Barrier at 70 % provides contingent protection but still leaves 30 % tail risk. Pricing: An initial value of $878–$928 signals roughly 7–12 % embedded costs and hedging spreads, a typical level for retail notes. Liquidity: Secondary market is dealer-driven; bid/ask spreads can be deep if volatility spikes. Credit: RBC’s high investment-grade rating mitigates default risk but does not eliminate it. Impact: From an issuer standpoint, this is routine funding; for investors, risk/reward is highly product-specific rather than company-wide.
TL;DR: Limited upside, significant tail risk, exposure to EM ex-China and Eurozone cyclicals; overall neutral to negative risk-adjusted appeal.
The product aggregates two volatile underliers with low correlation, raising the probability the worst performer breaches the 70 % barrier. Given the five-year tenor, historical drawdowns on EMXC and SX5E exceed 30 % in multiple stress periods, implying material capital-loss odds. Lack of interim coupons increases opportunity cost versus conventional bonds. Investors seeking emerging-market or Eurozone equity exposure might achieve superior liquidity and transparency via ETFs. Tax treatment is uncertain and complexities may erode after-tax returns. As such, I view the note as not materially impactful to RBC, but potentially negatively skewed for retail holders.
Royal Bank of Canada (RY) ha presentato un Free Writing Prospectus per le “Barrier Digital Notes” con scadenza il 1° agosto 2030. Le obbligazioni denominate $1.000 sono collegate all’iShares MSCI Emerging Markets ex-China ETF (EMXC) e all’EURO STOXX 50 Index (SX5E). Alla scadenza, il pagamento dipende dal Least Performing Underlier:
- Rendimento positivo: Se il valore finale dell’underlier peggiore è ≥ al suo livello iniziale, gli investitori ricevono il maggiore tra (a) il rendimento totale dell’underlier o (b) un “Rendimento Digitale” fisso del 55%.
- Protezione condizionata del capitale: Se l’underlier peggiore termina tra il 70% e il 99,99% del suo livello iniziale, viene restituito solo il capitale.
- Rischio al ribasso: Se l’underlier peggiore chiude al di sotto del 70% del valore iniziale, i detentori perdono l’1% del capitale per ogni 1% di calo, fino alla perdita totale.
Le date chiave sono: Data di negoziazione 28 luglio 2025, Data di valutazione 29 luglio 2030 e Scadenza 1 agosto 2030. Il valore stimato iniziale è tra $878 e $928 per ogni $1.000—ben al di sotto del prezzo di offerta pubblica, riflettendo la compensazione del distributore e i costi di copertura. Le note non pagano alcuna cedola, sono non garantite e comportano il rischio di credito di RBC. I fattori di rischio includono volatilità di mercato, esposizione ai mercati emergenti, dinamiche valutarie, mancanza di liquidità secondaria, potenziali conflitti di interesse, incertezza fiscale e possibilità di rimborso anticipato in caso di cambiamenti normativi.
In sintesi, lo strumento offre un potenziale di rendimento incrementato fino a un limite digitale del 55% con protezione condizionata al ribasso, ma gli investitori affrontano rischi significativi sul capitale, illiquidità e un valore inferiore rispetto all’esposizione diretta a ETF o indici.
Royal Bank of Canada (RY) ha presentado un Free Writing Prospectus para las “Barrier Digital Notes” con vencimiento el 1 de agosto de 2030. Los bonos denominados en $1,000 están vinculados al iShares MSCI Emerging Markets ex-China ETF (EMXC) y al EURO STOXX 50 Index (SX5E). Al vencimiento, el pago depende del Least Performing Underlier:
- Subida: Si el valor final del subyacente con peor desempeño es ≥ a su nivel inicial, los inversores reciben el mayor entre (a) el rendimiento total del subyacente o (b) un “Retorno Digital” fijo del 55%.
- Protección contingente del principal: Si el subyacente peor termina entre el 70% y el 99.99% de su nivel inicial, se devuelve únicamente el principal.
- Bajada: Si el subyacente peor cierra por debajo del 70% de su valor inicial, los tenedores pierden el 1% del principal por cada 1% de caída, hasta la pérdida total.
Las fechas clave son: Fecha de negociación 28 de julio de 2025, Fecha de valoración 29 de julio de 2030 y Vencimiento 1 de agosto de 2030. El valor estimado inicial es entre
En resumen, el instrumento ofrece un potencial de rendimiento apalancado hasta un tope digital del 55% con protección condicional a la baja, pero los inversores enfrentan riesgos significativos sobre el principal, iliquidez y un valor inferior en comparación con la exposición directa a ETFs o índices.
Royal Bank of Canada(RY)는 2030년 8월 1일 만기인 “Barrier Digital Notes”에 대한 Free Writing Prospectus를 제출했습니다. $1,000 단위로 발행되는 이 노트는 iShares MSCI Emerging Markets ex-China ETF (EMXC)와 EURO STOXX 50 Index (SX5E)에 연동되어 있습니다. 만기 시 지급액은 최저 성과 기초자산(Least Performing Underlier)에 따라 결정됩니다:
- 상승 시: 최저 성과 기초자산의 최종 가치가 초기 수준 이상이면, 투자자는 (a) 기초자산의 총 수익 또는 (b) 고정된 55% “디지털 수익” 중 더 큰 금액을 받습니다.
- 조건부 원금 보호: 최저 성과 기초자산이 초기 수준의 70%에서 99.99% 사이에 마감되면 원금만 반환됩니다.
- 하락 시: 최저 성과 기초자산이 초기 가치의 70% 미만으로 마감되면, 투자자는 1% 하락할 때마다 원금의 1%를 잃으며 최대 전액 손실까지 발생할 수 있습니다.
주요 일정은 거래일 2025년 7월 28일, 평가일 2030년 7월 29일, 만기일 2030년 8월 1일입니다. 초기 예상 가치는 $1,000당 $878–$928로, 공모가보다 훨씬 낮으며 유통사 보상 및 헤지 비용이 반영된 수치입니다. 이 노트는 쿠폰이 없으며, 무담보이고 RBC 신용 위험을 포함합니다. 위험 요소로는 시장 변동성, 신흥 시장 노출, 환율 변동, 2차 유동성 부족, 이해 상충 가능성, 세금 불확실성 및 규제 변경 시 조기 상환 가능성이 포함됩니다.
전반적으로 이 상품은 최대 55% 디지털 한도 내에서 레버리지 상승 잠재력과 조건부 하락 보호를 제공하지만, 투자자는 원금 손실 위험, 비유동성 및 ETF나 지수 직접 투자 대비 가치 하락 위험에 직면합니다.
La Royal Bank of Canada (RY) a déposé un Free Writing Prospectus pour des « Barrier Digital Notes » arrivant à échéance le 1er août 2030. Les notes libellées à 1 000 $ sont liées à l’iShares MSCI Emerging Markets ex-China ETF (EMXC) et à l’EURO STOXX 50 Index (SX5E). À l’échéance, le paiement dépend du Least Performing Underlier :
- Hausse : Si la valeur finale de l’actif sous-jacent le moins performant est ≥ à son niveau initial, les investisseurs reçoivent le plus élevé entre (a) le rendement total de l’actif sous-jacent ou (b) un « Rendement Digital » fixe de 55 %.
- Protection conditionnelle du capital : Si l’actif sous-jacent le moins performant termine entre 70 % et 99,99 % de son niveau initial, le capital est simplement remboursé.
- Baisse : Si l’actif sous-jacent le moins performant clôture en dessous de 70 % de sa valeur initiale, les détenteurs perdent 1 % du capital pour chaque 1 % de baisse, jusqu’à une perte totale.
Les dates clés sont : date de transaction le 28 juillet 2025, date d’évaluation le 29 juillet 2030 et échéance le 1er août 2030. La valeur estimée initiale est comprise entre 878 $ et 928 $ pour 1 000 $—bien en dessous du prix d’offre publique, reflétant la rémunération du distributeur et les coûts de couverture. Les notes ne versent aucun coupon, ne sont pas garanties et comportent un risque de crédit RBC. Les facteurs de risque incluent la volatilité du marché, l’exposition aux marchés émergents, les dynamiques monétaires, le manque de liquidité secondaire, les conflits d’intérêts potentiels, l’incertitude fiscale et la possibilité de remboursement anticipé en cas de changements réglementaires.
Dans l’ensemble, l’instrument offre un potentiel de hausse à effet de levier jusqu’à un plafond digital de 55 % avec une protection conditionnelle à la baisse, mais les investisseurs sont exposés à un risque significatif sur le capital, à l’illiquidité et à une décote par rapport à une exposition directe aux ETF ou aux indices.
Die Royal Bank of Canada (RY) hat einen Free Writing Prospectus für „Barrier Digital Notes“ mit Fälligkeit am 1. August 2030 eingereicht. Die auf $1.000 lautenden Notes sind an den iShares MSCI Emerging Markets ex-China ETF (EMXC) und den EURO STOXX 50 Index (SX5E) gekoppelt. Bei Fälligkeit hängt die Auszahlung vom Least Performing Underlier ab:
- Aufwärts: Wenn der Endwert des am schlechtesten performenden Underliers ≥ seinem Anfangswert ist, erhalten Anleger den höheren Wert von (a) der Gesamtrendite des Underliers oder (b) einer festen 55 % „Digital Return“.
- Bedingter Kapitalschutz: Wenn der schlechteste Underlier zwischen 70 % und 99,99 % seines Anfangswerts schließt, wird nur das Kapital zurückgezahlt.
- Abwärts: Schließt der schlechteste Underlier unter 70 % seines Anfangswerts, verlieren Inhaber 1 % des Kapitals für jeden 1 % Rückgang, bis zum Totalverlust.
Wichtige Termine sind Handelstag 28. Juli 2025, Bewertungsdatum 29. Juli 2030 und Fälligkeit 1. August 2030. Der anfängliche Schätzwert liegt bei
Insgesamt bietet das Instrument einen gehebelten Aufwärtsspielraum bis zu einem digitalen Cap von 55 % mit bedingtem Abwärtsschutz, jedoch stehen Anlegern erhebliche Kapitalrisiken, Illiquidität und ein Bewertungsabschlag gegenüber einer direkten ETF- oder Index-Exponierung gegenüber.
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Barrier Digital Notes Due August 1, 2030
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| PRODUCT CHARACTERISTICS |
| · | Enhanced Return Potential with a Digital Return — If the Final Underlier Value of the Least Performing Underlier is greater than or equal to its Initial Underlier Value, at maturity, investors will receive a return equal to the greater of (a) the Underlier Return of the Least Performing Underlier and (b) the Digital Return of 55%. |
| · | Contingent Return of Principal at Maturity — If the Final Underlier Value of the Least Performing Underlier is less than its Initial Underlier Value, but is greater than or equal to its Barrier Value, at maturity, investors will receive the principal amount of their Notes. If the Final Underlier Value of the Least Performing Underlier is less than its Barrier Value, at maturity, investors will lose 1% of the principal amount of their Notes for each 1% that the Final Underlier Value of the Least Performing Underlier is less than its Initial Underlier Value. |
| KEY TERMS | |
| Issuer: | Royal Bank of Canada (“RBC”) |
| CUSIP: | 78017PEM9 |
| Underliers: | The iShares® MSCI Emerging Markets ex China ETF (Bloomberg symbol “EMXC UQ”) and the EURO STOXX 50® Index (Bloomberg symbol “SX5E”) |
| Trade Date: | July 28, 2025 |
| Issue Date: | July 31, 2025 |
| Valuation Date: | July 29, 2030 |
| Maturity Date: | August 1, 2030 |
| Payment at Maturity: |
Investors will receive on the Maturity Date per $1,000 principal amount of Notes: · If the Final Underlier Value of the Least Performing Underlier is greater than or equal to its Initial Underlier Value, an amount equal to: $1,000 + ($1,000 × the greater of (a) Underlier Return of the Least Performing Underlier and (b) Digital Return) · If the Final Underlier Value of the Least Performing Underlier is less than its Initial Underlier Value, but is greater than or equal to its Barrier Value: $1,000 · If the Final Underlier Value of the Least Performing Underlier is less than its Barrier Value, an amount equal to: $1,000 + ($1,000 × Underlier Return of the Least Performing Underlier) If the Final Underlier Value of the Least Performing Underlier is less than its Barrier Value, you will lose a substantial portion or all of your principal amount at maturity. |
| Digital Return: | 55% |
| Barrier Value: | With respect to each Underlier, 70% of its Initial Underlier Value |
| KEY TERMS (continued) | |
| Underlier Return: |
With respect to each Underlier: Final Underlier Value –
Initial Underlier Value |
| Initial Underlier Value: | With respect to each Underlier, the closing value of that Underlier on the Trade Date |
| Final Underlier Value: | With respect to each Underlier, the closing value of that Underlier on the Valuation Date |
| Least Performing Underlier: | The Underlier with the lowest Underlier Return |
| PAYOFF DIAGRAM |
This document provides a summary of the terms of the Notes. Investors should carefully review the accompanying preliminary pricing supplement, product supplement, underlying supplement, prospectus supplement and prospectus, as well as “Selected Risk Considerations” below, before making a decision to invest in the Notes:
https://www.sec.gov/Archives/edgar/data/1000275/000095010325008451/dp231235_424b2-us2774mul.htm
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 $878.00 and $928.00 per $1,000 principal amount of Notes and will be less than the public offering price of the Notes. We describe the determination of the initial estimated value in more detail in the accompanying preliminary pricing supplement.
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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 “Selected Risk Considerations” section of the accompanying preliminary pricing supplement and the “Risk Factors” sections of the accompanying prospectus, prospectus supplement and product supplement. You should not purchase the Notes unless you understand and can bear the risks of investing in the Notes.
| · | You May Lose a Portion or All of the Principal Amount at Maturity. |
| · | Any Payment on the Notes Will Be Determined Solely by the Performance of the Least Performing Underlier Even If the Other Underlier Performs Better. |
| · | The Notes Do Not Pay Interest, and Your Return on the Notes May Be Lower Than the Return on a Conventional Debt Security of Comparable Maturity. |
| · | 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. |
| · | Any Payment on the Notes Will Be Determined Based on the Closing Values of the Underliers on the Dates Specified. |
| · | The U.S. Federal Income Tax Consequences of an Investment in the Notes Are Uncertain. |
| · | There May Not Be an Active Trading Market for the Notes; Sales in the Secondary Market May Result in Significant Losses. |
| · | The Initial Estimated Value of the Notes Will Be Less Than the Public Offering Price. |
| · | The Initial Estimated Value of the Notes Is Only an Estimate, Calculated as of the Trade Date. |
| · | Our and Our Affiliates’ Business and Trading Activities May Create Conflicts of Interest. |
| · | RBCCM’s Role as Calculation Agent May Create Conflicts of Interest. |
| · | You Will Not Have Any Rights to the EMXC Fund or the Securities Composing Any Underlier. |
| · | The EMXC Fund and the Underlying Index Are Different. |
| · | The Notes Are Subject to Risks Relating to Non-U.S. Securities Markets. |
| · | The Notes Are Subject to Risks Relating to Emerging Markets with Respect to the EMXC Fund. |
| · | The Notes Do Not Provide Direct Exposure to Fluctuations in Exchange Rates between the U.S. Dollar and the Euro with Respect to the SX5E Index. |
| · | The Value of the EMXC Fund Is Subject to Currency Exchange Risk. |
| · | We May Accelerate the Notes If a Change-in-Law Event Occurs. |
| · | Any Payment on the Notes May Be Postponed and Adversely Affected by the Occurrence of a Market Disruption Event. |
| · | Adjustments to the EMXC Fund or to the Underlying Index Could Adversely Affect Any Payments on the Notes. |
| · | Adjustments to the SX5E Index Could Adversely Affect Any Payments on the Notes. |
| · | Anti-dilution Protection Is Limited, and the Calculation Agent Has Discretion to Make Anti-dilution Adjustments. |
| · | Reorganization or Other Events Could Adversely Affect the Value of the Notes or Result in the Notes Being Accelerated. |
Royal Bank of Canada has filed a registration statement (including a product supplement, underlying supplement, prospectus supplement and 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 we have filed with the SEC for more complete information about us and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, we, any agent or any dealer participating in this offering will arrange to send you those documents if you so request by calling toll-free at 1-877-688-2301.
As used in this document, “Royal Bank of Canada,” “we,” “our” and “us” mean only Royal Bank of Canada. Capitalized terms used in this document without definition are as defined in the accompanying preliminary pricing supplement.
Registration Statement No. 333-275898; filed pursuant to Rule 433
FAQ
What is the digital return on Royal Bank of Canada (RY) Barrier Digital Notes?
How much principal protection do the RY notes provide?
Which indices underlie the Barrier Digital Notes?
Why is the initial estimated value lower than the $1,000 offer price?
Do the RBC notes pay periodic interest?
Can I sell the notes before maturity?
