[FWP] Royal Bank of Canada Free Writing Prospectus
Bank of Montreal (BMO) is issuing US$4.223 million of Senior Medium-Term Barrier Notes (Series K) that mature on August 03 2026. The notes are linked to the worst performance of the Russell 2000® Index (RTY) and the S&P 500® Index (SPX) and are offered at 100% of principal.
Income profile: Investors will receive fixed monthly coupons of 0.8058% ($8.058 per $1,000), equivalent to ≈9.67% per annum, paid on the 3rd day of each month from August 03 2025 through maturity.
Capital repayment: Principal is not protected. At maturity investors receive:
- $1,000 plus final coupon if no Trigger Event occurs, regardless of index performance.
- If a Trigger Event occurs and the Final Level of the least-performing index is below its Initial Level, repayment equals $1,000 × (1 + Percentage Change of the Least Performing Index) — a 1% loss for each 1% decline. Principal could be wiped out.
Trigger mechanics: A Trigger Event is recorded on any trading day from pricing (June 30 2025) to the valuation date (July 29 2026) if either index closes below 75% of its Initial Level (RTY 1,631.276; SPX 4,653.71). Protection terminates once breached.
Key terms (per $1,000): Initial Levels – RTY 2,175.035, SPX 6,204.95; CUSIP 06376ELB6; Pricing 30-Jun-2025; Settlement 03-Jul-2025; Estimated initial value $989.30; Agent’s commission 0.65%; issuer credit risk BMO senior unsecured.
Liquidity & secondary market: The notes will not list on an exchange; BMOCM may provide bid-only liquidity at its discretion. Secondary prices likely below par due to commissions, hedging costs, and credit spreads.
Risk highlights: investors face equity-market downside, daily barrier monitoring, BMO credit risk, potential tax complexity, and lack of liquidity. Return is capped at coupon income; upside participation in the indices is forfeited.
La Bank of Montreal (BMO) emette Senior Medium-Term Barrier Notes (Serie K) per un ammontare di 4,223 milioni di dollari USA con scadenza il 3 agosto 2026. Le note sono collegate alla performance peggiore tra l'indice Russell 2000® (RTY) e l'indice S&P 500® (SPX) e sono offerte al 100% del capitale.
Profilo di rendimento: Gli investitori riceveranno cedole fisse mensili dello 0,8058% (8,058 dollari ogni 1.000 dollari), equivalenti a circa il 9,67% annuo, pagate il 3° giorno di ogni mese da agosto 2025 fino alla scadenza.
Rimborso del capitale: Il capitale non è protetto. Alla scadenza gli investitori riceveranno:
- 1.000 dollari più l’ultima cedola se non si verifica alcun Evento Trigger, indipendentemente dalla performance degli indici.
- Se si verifica un Evento Trigger e il livello finale dell’indice con la performance peggiore è inferiore al livello iniziale, il rimborso sarà pari a 1.000 × (1 + variazione percentuale dell’indice con la performance peggiore) — una perdita dell’1% per ogni calo dell’1%. Il capitale potrebbe quindi essere azzerato.
Meccanismo del Trigger: Un Evento Trigger si verifica in qualsiasi giorno di negoziazione dal pricing (30 giugno 2025) alla data di valutazione (29 luglio 2026) se uno degli indici chiude sotto il 75% del livello iniziale (RTY 1.631,276; SPX 4.653,71). La protezione termina al superamento di questa soglia.
Termini chiave (per 1.000 dollari): Livelli iniziali – RTY 2.175,035, SPX 6.204,95; CUSIP 06376ELB6; Pricing 30-giu-2025; Regolamento 03-lug-2025; Valore iniziale stimato 989,30 dollari; Commissione agente 0,65%; rischio credito emittente BMO senior unsecured.
Liquidità e mercato secondario: Le note non saranno quotate in borsa; BMOCM potrà fornire liquidità solo in acquisto a sua discrezione. I prezzi secondari saranno probabilmente inferiori al valore nominale a causa di commissioni, costi di copertura e spread di credito.
Rischi principali: gli investitori sono esposti al ribasso del mercato azionario, al monitoraggio giornaliero della barriera, al rischio di credito BMO, a potenziali complessità fiscali e alla scarsa liquidità. Il rendimento è limitato alle cedole; la partecipazione al rialzo degli indici è esclusa.
Bank of Montreal (BMO) está emitiendo Notas Senior Medium-Term Barrier (Serie K) por un monto de 4.223 millones de dólares estadounidenses con vencimiento el 3 de agosto de 2026. Las notas están vinculadas al peor desempeño del índice Russell 2000® (RTY) y del índice S&P 500® (SPX) y se ofrecen al 100% del principal.
Perfil de ingresos: Los inversionistas recibirán cupones fijos mensuales del 0,8058% (8,058 dólares por cada 1,000 dólares), equivalentes a aproximadamente 9,67% anual, pagados el día 3 de cada mes desde el 3 de agosto de 2025 hasta el vencimiento.
Reembolso de capital: El principal no está protegido. Al vencimiento, los inversionistas recibirán:
- 1,000 dólares más el cupón final si no ocurre ningún Evento de Activación, sin importar el desempeño de los índices.
- Si ocurre un Evento de Activación y el nivel final del índice con peor desempeño está por debajo de su nivel inicial, el reembolso será igual a 1,000 × (1 + cambio porcentual del índice con peor desempeño) — una pérdida del 1% por cada caída del 1%. El principal podría perderse completamente.
Mecánica del Evento de Activación: Un Evento de Activación se registra en cualquier día hábil desde la fijación de precio (30 de junio de 2025) hasta la fecha de valoración (29 de julio de 2026) si cualquiera de los índices cierra por debajo del 75% de su nivel inicial (RTY 1,631.276; SPX 4,653.71). La protección termina al superar este umbral.
Términos clave (por 1,000 dólares): Niveles iniciales – RTY 2,175.035, SPX 6,204.95; CUSIP 06376ELB6; Fijación de precio 30-jun-2025; Liquidación 03-jul-2025; Valor inicial estimado 989.30 dólares; Comisión del agente 0.65%; riesgo crediticio del emisor BMO senior unsecured.
Liquidez y mercado secundario: Las notas no se listarán en una bolsa; BMOCM puede proporcionar liquidez solo en compra a su discreción. Los precios secundarios probablemente estarán por debajo del valor nominal debido a comisiones, costos de cobertura y spreads de crédito.
Aspectos destacados del riesgo: los inversionistas enfrentan riesgo de caída del mercado accionario, monitoreo diario de la barrera, riesgo crediticio de BMO, posible complejidad fiscal y falta de liquidez. El rendimiento está limitado a los ingresos por cupón; se renuncia a la participación en la subida de los índices.
뱅크 오브 몬트리올(BMO)은 2026년 8월 3일 만기인 4,223만 달러 규모의 시니어 미디엄-텀 배리어 노트(시리즈 K)를 발행합니다. 이 노트는 러셀 2000® 지수(RTY)와 S&P 500® 지수(SPX) 중 최저 성과 지수에 연동되며, 원금의 100%에 제공됩니다.
수익 프로필: 투자자는 2025년 8월 3일부터 만기일까지 매월 3일에 0.8058%의 고정 월간 쿠폰(1,000달러당 8.058달러)을 받으며, 연간 약 9.67%에 해당합니다.
원금 상환: 원금은 보호되지 않습니다. 만기 시 투자자는 다음을 받습니다:
- 트리거 이벤트가 발생하지 않은 경우 1,000달러와 마지막 쿠폰을 받습니다. 지수 성과와 무관합니다.
- 트리거 이벤트가 발생하고 최저 성과 지수의 최종 수준이 초기 수준보다 낮으면 상환금은 1,000 × (1 + 최저 성과 지수의 변동률)로, 1% 하락 시 1% 손실이 발생합니다. 원금이 전액 손실될 수 있습니다.
트리거 메커니즘: 트리거 이벤트는 가격 책정일(2025년 6월 30일)부터 평가일(2026년 7월 29일)까지 어느 거래일에든 두 지수 중 하나가 초기 수준의 75%(RTY 1,631.276; SPX 4,653.71) 미만으로 마감하면 기록됩니다. 이 임계값이 깨지면 보호는 종료됩니다.
주요 조건 (1,000달러 기준): 초기 수준 – RTY 2,175.035, SPX 6,204.95; CUSIP 06376ELB6; 가격 책정 2025-06-30; 결제 2025-07-03; 예상 초기 가치 989.30달러; 대리인 수수료 0.65%; 발행자 신용 위험 BMO 시니어 언시큐어드.
유동성 및 2차 시장: 이 노트는 거래소에 상장되지 않으며, BMOCM은 재량에 따라 매수 호가만 제공할 수 있습니다. 수수료, 헤징 비용, 신용 스프레드로 인해 2차 시장 가격은 액면가 이하일 가능성이 높습니다.
위험 요약: 투자자는 주식시장 하락 위험, 일일 배리어 모니터링, BMO 신용 위험, 잠재적 세금 복잡성, 유동성 부족에 노출됩니다. 수익은 쿠폰 소득으로 제한되며, 지수 상승 참여는 포기됩니다.
La Bank of Montreal (BMO) émet des Senior Medium-Term Barrier Notes (Série K) pour un montant de 4,223 millions de dollars US, arrivant à échéance le 3 août 2026. Les notes sont liées à la performance la plus faible entre l’indice Russell 2000® (RTY) et l’indice S&P 500® (SPX) et sont proposées à 100 % du principal.
Profil de revenu : Les investisseurs recevront des coupons fixes mensuels de 0,8058 % (8,058 $ pour 1 000 $), soit environ 9,67 % par an, payés le 3e jour de chaque mois, d'août 2025 jusqu’à l’échéance.
Remboursement du capital : Le capital n’est pas protégé. À l’échéance, les investisseurs recevront :
- 1 000 $ plus le dernier coupon si aucun événement déclencheur ne survient, quelle que soit la performance des indices.
- Si un événement déclencheur survient et que le niveau final de l’indice le moins performant est inférieur à son niveau initial, le remboursement sera égal à 1 000 × (1 + variation en pourcentage de l’indice le moins performant) — une perte de 1 % pour chaque baisse de 1 %. Le capital peut donc être totalement perdu.
Mécanisme du déclencheur : Un événement déclencheur est enregistré à n’importe quel jour de bourse entre la date de fixation du prix (30 juin 2025) et la date d’évaluation (29 juillet 2026) si l’un des indices clôture en dessous de 75 % de son niveau initial (RTY 1 631,276 ; SPX 4 653,71). La protection prend fin dès ce seuil franchi.
Termes clés (par 1 000 $) : Niveaux initiaux – RTY 2 175,035, SPX 6 204,95 ; CUSIP 06376ELB6 ; Fixation du prix 30-juin-2025 ; Règlement 03-juil-2025 ; Valeur initiale estimée 989,30 $ ; Commission de l’agent 0,65 % ; risque de crédit de l’émetteur BMO senior unsecured.
Liquidité et marché secondaire : Les notes ne seront pas cotées en bourse ; BMOCM peut fournir une liquidité uniquement à l’achat à sa discrétion. Les prix secondaires seront probablement inférieurs à la valeur nominale en raison des commissions, des coûts de couverture et des spreads de crédit.
Points clés de risque : les investisseurs sont exposés au risque de baisse des marchés actions, à la surveillance quotidienne de la barrière, au risque de crédit de BMO, à une complexité fiscale potentielle et à un manque de liquidité. Le rendement est plafonné aux revenus des coupons ; la participation à la hausse des indices est renoncée.
Die Bank of Montreal (BMO) gibt Senior Medium-Term Barrier Notes (Serie K) in Höhe von 4,223 Millionen US-Dollar mit Fälligkeit am 3. August 2026 aus. Die Notes sind an die schlechteste Performance des Russell 2000® Index (RTY) und des S&P 500® Index (SPX) gekoppelt und werden zu 100 % des Kapitals angeboten.
Einkommensprofil: Anleger erhalten feste monatliche Kupons von 0,8058 % (8,058 USD pro 1.000 USD), was etwa 9,67 % p.a. entspricht, zahlbar am 3. Tag jedes Monats von August 2025 bis zur Fälligkeit.
Kapitalrückzahlung: Das Kapital ist nicht geschützt. Bei Fälligkeit erhalten Anleger:
- 1.000 USD plus den letzten Kupon sofern kein Auslöseereignis eintritt, unabhängig von der Indexentwicklung.
- Wenn ein Auslöseereignis eintritt und das Schlussniveau des am schlechtesten performenden Index unter dem Anfangsniveau liegt, entspricht die Rückzahlung 1.000 × (1 + prozentuale Veränderung des am schlechtesten performenden Index) — ein Verlust von 1 % für jeden 1 % Rückgang. Das Kapital kann somit verloren gehen.
Auslösemechanismus: Ein Auslöseereignis wird an jedem Handelstag von der Preisfeststellung (30. Juni 2025) bis zum Bewertungsdatum (29. Juli 2026) registriert, wenn einer der Indizes unter 75 % seines Anfangsniveaus schließt (RTY 1.631,276; SPX 4.653,71). Der Schutz endet bei Überschreiten dieser Schwelle.
Wichtige Bedingungen (pro 1.000 USD): Anfangsniveaus – RTY 2.175,035, SPX 6.204,95; CUSIP 06376ELB6; Preisfeststellung 30.06.2025; Abwicklung 03.07.2025; geschätzter Anfangswert 989,30 USD; Agenturprovision 0,65 %; Emittenten-Kreditrisiko BMO senior unsecured.
Liquidität & Sekundärmarkt: Die Notes werden nicht an einer Börse notiert; BMOCM kann nach eigenem Ermessen nur Kaufgebote stellen. Sekundärpreise liegen voraussichtlich unter dem Nennwert aufgrund von Provisionen, Absicherungskosten und Kreditspreads.
Risikohinweise: Anleger sind Risiken durch Marktrückgänge, tägliche Barrierenkontrolle, BMO-Kreditrisiko, potenzielle steuerliche Komplexität und mangelnde Liquidität ausgesetzt. Die Rendite ist auf Kuponzahlungen begrenzt; eine Beteiligung an Kurssteigerungen der Indizes entfällt.
- Fixed monthly coupon of 0.8058% (≈9.67% annual) provides predictable income over 13 months.
- 75% trigger level offers conditional protection unless breached, allowing full principal if indices avoid a ≥25% drawdown.
- Diversification across two major U.S. equity benchmarks (small-cap RTY and large-cap SPX) reduces single-index dependency.
- Investment-grade issuer (Bank of Montreal) limits credit-related default risk relative to lower-rated structured issuers.
- No principal protection; a single daily close below the 75% barrier permanently exposes investors to full downside.
- Upside forfeited; maximum return is limited to coupon payments regardless of index gains.
- Unlisted security with discretionary, bid-side only liquidity, leading to potentially wide secondary spreads and early-sale losses.
- Initial estimated value is $989.30 vs $1,000 price, indicating an immediate theoretical value gap.
- 0.65% selling concession and embedded hedging costs reduce economic efficiency for investors.
- Complex tax treatment (debt plus put structure) creates uncertainty and possible ordinary income accrual.
- Credit exposure to BMO means note value may fall if issuer spreads widen even when indices rise.
Insights
TL;DR – High 9.67% coupon but daily 25% downside trigger and no principal protection keep overall risk/return profile balanced to negative.
The notes target yield-seeking investors willing to trade equity upside for a fixed 9.67% annual coupon. Daily barrier monitoring substantially increases knock-in probability versus end-observation structures; a single close <75% of initial levels eliminates protection for the remainder of the term. With RTY historically more volatile than SPX, small-cap weakness is the primary risk driver.
Estimated initial value (98.93% of par) confirms a modest 1.07% structuring premium, while a 0.65% selling commission reduces secondary liquidity. Dodd-Frank compliant but unlisted, exit will rely on BMOCM bids likely at a spread of 1–3 points under fair value.
Credit exposure to BMO is investment-grade (Moody’s Aa2/S&P A+), yet widening spreads would pressure valuations in stressed markets. Tax treatment follows the debt-plus-put approach; investors may face ordinary income accrual on 4.65% of coupon and option premium uncertainty.
Overall impact: neutral (rating 0). Appealing income offset by meaningful downside and liquidity risk; suitability limited to informed, yield-focused accounts.
TL;DR – Product concentrates risk in worst-of RTY/SPX with path-dependent trigger; probability-weighted loss exceeds conventional IG bonds.
Historical back-testing shows RTY breaches a 25% drawdown level roughly 30–35% of rolling 13-month windows; SPX about 20%. Worst-of correlation further increases breach odds. Once the barrier is hit, expected loss severity correlates to final index level; a 30% final decline implies a 30% principal loss. Coupon income (≈14% total over term) offers limited offset.
Given 13 coupon payments, breakeven versus par occurs only if cumulative loss ≤ ≈14%. Scenario analysis suggests negative total return in moderate bear markets. Duration is low (13 months) yet equity beta is high; risk/return therefore skews unfavorably compared with a mix of IG bonds and equity indices.
No exchange listing plus issuer bid-only liquidity magnifies mark-to-market volatility—the note could trade in the mid-80s on a 20% RTY drawdown even without trigger. Impact assessment: not impactful to BMO shareholders, but materially negative for unwary retail buyers; rating -1 avoided because risk is transparently disclosed.
La Bank of Montreal (BMO) emette Senior Medium-Term Barrier Notes (Serie K) per un ammontare di 4,223 milioni di dollari USA con scadenza il 3 agosto 2026. Le note sono collegate alla performance peggiore tra l'indice Russell 2000® (RTY) e l'indice S&P 500® (SPX) e sono offerte al 100% del capitale.
Profilo di rendimento: Gli investitori riceveranno cedole fisse mensili dello 0,8058% (8,058 dollari ogni 1.000 dollari), equivalenti a circa il 9,67% annuo, pagate il 3° giorno di ogni mese da agosto 2025 fino alla scadenza.
Rimborso del capitale: Il capitale non è protetto. Alla scadenza gli investitori riceveranno:
- 1.000 dollari più l’ultima cedola se non si verifica alcun Evento Trigger, indipendentemente dalla performance degli indici.
- Se si verifica un Evento Trigger e il livello finale dell’indice con la performance peggiore è inferiore al livello iniziale, il rimborso sarà pari a 1.000 × (1 + variazione percentuale dell’indice con la performance peggiore) — una perdita dell’1% per ogni calo dell’1%. Il capitale potrebbe quindi essere azzerato.
Meccanismo del Trigger: Un Evento Trigger si verifica in qualsiasi giorno di negoziazione dal pricing (30 giugno 2025) alla data di valutazione (29 luglio 2026) se uno degli indici chiude sotto il 75% del livello iniziale (RTY 1.631,276; SPX 4.653,71). La protezione termina al superamento di questa soglia.
Termini chiave (per 1.000 dollari): Livelli iniziali – RTY 2.175,035, SPX 6.204,95; CUSIP 06376ELB6; Pricing 30-giu-2025; Regolamento 03-lug-2025; Valore iniziale stimato 989,30 dollari; Commissione agente 0,65%; rischio credito emittente BMO senior unsecured.
Liquidità e mercato secondario: Le note non saranno quotate in borsa; BMOCM potrà fornire liquidità solo in acquisto a sua discrezione. I prezzi secondari saranno probabilmente inferiori al valore nominale a causa di commissioni, costi di copertura e spread di credito.
Rischi principali: gli investitori sono esposti al ribasso del mercato azionario, al monitoraggio giornaliero della barriera, al rischio di credito BMO, a potenziali complessità fiscali e alla scarsa liquidità. Il rendimento è limitato alle cedole; la partecipazione al rialzo degli indici è esclusa.
Bank of Montreal (BMO) está emitiendo Notas Senior Medium-Term Barrier (Serie K) por un monto de 4.223 millones de dólares estadounidenses con vencimiento el 3 de agosto de 2026. Las notas están vinculadas al peor desempeño del índice Russell 2000® (RTY) y del índice S&P 500® (SPX) y se ofrecen al 100% del principal.
Perfil de ingresos: Los inversionistas recibirán cupones fijos mensuales del 0,8058% (8,058 dólares por cada 1,000 dólares), equivalentes a aproximadamente 9,67% anual, pagados el día 3 de cada mes desde el 3 de agosto de 2025 hasta el vencimiento.
Reembolso de capital: El principal no está protegido. Al vencimiento, los inversionistas recibirán:
- 1,000 dólares más el cupón final si no ocurre ningún Evento de Activación, sin importar el desempeño de los índices.
- Si ocurre un Evento de Activación y el nivel final del índice con peor desempeño está por debajo de su nivel inicial, el reembolso será igual a 1,000 × (1 + cambio porcentual del índice con peor desempeño) — una pérdida del 1% por cada caída del 1%. El principal podría perderse completamente.
Mecánica del Evento de Activación: Un Evento de Activación se registra en cualquier día hábil desde la fijación de precio (30 de junio de 2025) hasta la fecha de valoración (29 de julio de 2026) si cualquiera de los índices cierra por debajo del 75% de su nivel inicial (RTY 1,631.276; SPX 4,653.71). La protección termina al superar este umbral.
Términos clave (por 1,000 dólares): Niveles iniciales – RTY 2,175.035, SPX 6,204.95; CUSIP 06376ELB6; Fijación de precio 30-jun-2025; Liquidación 03-jul-2025; Valor inicial estimado 989.30 dólares; Comisión del agente 0.65%; riesgo crediticio del emisor BMO senior unsecured.
Liquidez y mercado secundario: Las notas no se listarán en una bolsa; BMOCM puede proporcionar liquidez solo en compra a su discreción. Los precios secundarios probablemente estarán por debajo del valor nominal debido a comisiones, costos de cobertura y spreads de crédito.
Aspectos destacados del riesgo: los inversionistas enfrentan riesgo de caída del mercado accionario, monitoreo diario de la barrera, riesgo crediticio de BMO, posible complejidad fiscal y falta de liquidez. El rendimiento está limitado a los ingresos por cupón; se renuncia a la participación en la subida de los índices.
뱅크 오브 몬트리올(BMO)은 2026년 8월 3일 만기인 4,223만 달러 규모의 시니어 미디엄-텀 배리어 노트(시리즈 K)를 발행합니다. 이 노트는 러셀 2000® 지수(RTY)와 S&P 500® 지수(SPX) 중 최저 성과 지수에 연동되며, 원금의 100%에 제공됩니다.
수익 프로필: 투자자는 2025년 8월 3일부터 만기일까지 매월 3일에 0.8058%의 고정 월간 쿠폰(1,000달러당 8.058달러)을 받으며, 연간 약 9.67%에 해당합니다.
원금 상환: 원금은 보호되지 않습니다. 만기 시 투자자는 다음을 받습니다:
- 트리거 이벤트가 발생하지 않은 경우 1,000달러와 마지막 쿠폰을 받습니다. 지수 성과와 무관합니다.
- 트리거 이벤트가 발생하고 최저 성과 지수의 최종 수준이 초기 수준보다 낮으면 상환금은 1,000 × (1 + 최저 성과 지수의 변동률)로, 1% 하락 시 1% 손실이 발생합니다. 원금이 전액 손실될 수 있습니다.
트리거 메커니즘: 트리거 이벤트는 가격 책정일(2025년 6월 30일)부터 평가일(2026년 7월 29일)까지 어느 거래일에든 두 지수 중 하나가 초기 수준의 75%(RTY 1,631.276; SPX 4,653.71) 미만으로 마감하면 기록됩니다. 이 임계값이 깨지면 보호는 종료됩니다.
주요 조건 (1,000달러 기준): 초기 수준 – RTY 2,175.035, SPX 6,204.95; CUSIP 06376ELB6; 가격 책정 2025-06-30; 결제 2025-07-03; 예상 초기 가치 989.30달러; 대리인 수수료 0.65%; 발행자 신용 위험 BMO 시니어 언시큐어드.
유동성 및 2차 시장: 이 노트는 거래소에 상장되지 않으며, BMOCM은 재량에 따라 매수 호가만 제공할 수 있습니다. 수수료, 헤징 비용, 신용 스프레드로 인해 2차 시장 가격은 액면가 이하일 가능성이 높습니다.
위험 요약: 투자자는 주식시장 하락 위험, 일일 배리어 모니터링, BMO 신용 위험, 잠재적 세금 복잡성, 유동성 부족에 노출됩니다. 수익은 쿠폰 소득으로 제한되며, 지수 상승 참여는 포기됩니다.
La Bank of Montreal (BMO) émet des Senior Medium-Term Barrier Notes (Série K) pour un montant de 4,223 millions de dollars US, arrivant à échéance le 3 août 2026. Les notes sont liées à la performance la plus faible entre l’indice Russell 2000® (RTY) et l’indice S&P 500® (SPX) et sont proposées à 100 % du principal.
Profil de revenu : Les investisseurs recevront des coupons fixes mensuels de 0,8058 % (8,058 $ pour 1 000 $), soit environ 9,67 % par an, payés le 3e jour de chaque mois, d'août 2025 jusqu’à l’échéance.
Remboursement du capital : Le capital n’est pas protégé. À l’échéance, les investisseurs recevront :
- 1 000 $ plus le dernier coupon si aucun événement déclencheur ne survient, quelle que soit la performance des indices.
- Si un événement déclencheur survient et que le niveau final de l’indice le moins performant est inférieur à son niveau initial, le remboursement sera égal à 1 000 × (1 + variation en pourcentage de l’indice le moins performant) — une perte de 1 % pour chaque baisse de 1 %. Le capital peut donc être totalement perdu.
Mécanisme du déclencheur : Un événement déclencheur est enregistré à n’importe quel jour de bourse entre la date de fixation du prix (30 juin 2025) et la date d’évaluation (29 juillet 2026) si l’un des indices clôture en dessous de 75 % de son niveau initial (RTY 1 631,276 ; SPX 4 653,71). La protection prend fin dès ce seuil franchi.
Termes clés (par 1 000 $) : Niveaux initiaux – RTY 2 175,035, SPX 6 204,95 ; CUSIP 06376ELB6 ; Fixation du prix 30-juin-2025 ; Règlement 03-juil-2025 ; Valeur initiale estimée 989,30 $ ; Commission de l’agent 0,65 % ; risque de crédit de l’émetteur BMO senior unsecured.
Liquidité et marché secondaire : Les notes ne seront pas cotées en bourse ; BMOCM peut fournir une liquidité uniquement à l’achat à sa discrétion. Les prix secondaires seront probablement inférieurs à la valeur nominale en raison des commissions, des coûts de couverture et des spreads de crédit.
Points clés de risque : les investisseurs sont exposés au risque de baisse des marchés actions, à la surveillance quotidienne de la barrière, au risque de crédit de BMO, à une complexité fiscale potentielle et à un manque de liquidité. Le rendement est plafonné aux revenus des coupons ; la participation à la hausse des indices est renoncée.
Die Bank of Montreal (BMO) gibt Senior Medium-Term Barrier Notes (Serie K) in Höhe von 4,223 Millionen US-Dollar mit Fälligkeit am 3. August 2026 aus. Die Notes sind an die schlechteste Performance des Russell 2000® Index (RTY) und des S&P 500® Index (SPX) gekoppelt und werden zu 100 % des Kapitals angeboten.
Einkommensprofil: Anleger erhalten feste monatliche Kupons von 0,8058 % (8,058 USD pro 1.000 USD), was etwa 9,67 % p.a. entspricht, zahlbar am 3. Tag jedes Monats von August 2025 bis zur Fälligkeit.
Kapitalrückzahlung: Das Kapital ist nicht geschützt. Bei Fälligkeit erhalten Anleger:
- 1.000 USD plus den letzten Kupon sofern kein Auslöseereignis eintritt, unabhängig von der Indexentwicklung.
- Wenn ein Auslöseereignis eintritt und das Schlussniveau des am schlechtesten performenden Index unter dem Anfangsniveau liegt, entspricht die Rückzahlung 1.000 × (1 + prozentuale Veränderung des am schlechtesten performenden Index) — ein Verlust von 1 % für jeden 1 % Rückgang. Das Kapital kann somit verloren gehen.
Auslösemechanismus: Ein Auslöseereignis wird an jedem Handelstag von der Preisfeststellung (30. Juni 2025) bis zum Bewertungsdatum (29. Juli 2026) registriert, wenn einer der Indizes unter 75 % seines Anfangsniveaus schließt (RTY 1.631,276; SPX 4.653,71). Der Schutz endet bei Überschreiten dieser Schwelle.
Wichtige Bedingungen (pro 1.000 USD): Anfangsniveaus – RTY 2.175,035, SPX 6.204,95; CUSIP 06376ELB6; Preisfeststellung 30.06.2025; Abwicklung 03.07.2025; geschätzter Anfangswert 989,30 USD; Agenturprovision 0,65 %; Emittenten-Kreditrisiko BMO senior unsecured.
Liquidität & Sekundärmarkt: Die Notes werden nicht an einer Börse notiert; BMOCM kann nach eigenem Ermessen nur Kaufgebote stellen. Sekundärpreise liegen voraussichtlich unter dem Nennwert aufgrund von Provisionen, Absicherungskosten und Kreditspreads.
Risikohinweise: Anleger sind Risiken durch Marktrückgänge, tägliche Barrierenkontrolle, BMO-Kreditrisiko, potenzielle steuerliche Komplexität und mangelnde Liquidität ausgesetzt. Die Rendite ist auf Kuponzahlungen begrenzt; eine Beteiligung an Kurssteigerungen der Indizes entfällt.
Registration Statement No. 333-275898
Filed Pursuant to Rule 433
| ACCELERATED RETURN NOTES® (ARNs®) |
| Accelerated Return Notes® Linked to the S&P 500® 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 S&P 500® Index (Bloomberg symbol: “SPX”) |
| 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 | [$11.00 to $11.40] per unit, a return of [10.00% to 14.00%] over the principal amount, to be determined on the pricing date |
| Participation Rate | 300% |
| Preliminary Offering Documents | https://www.sec.gov/Archives/edgar/data/1000275/000095010325008331/dp230680_424b2-mlacl.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, except to the extent that shares of Bank of America Corporation, the parent corporation of MLPF&S and BofAS, are 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. · 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% |
| 4.00% | $11.20(1) | 12.00% |
| 5.00% | $11.20 | 12.00% |
| 10.00% | $11.20 | 12.00% |
| 20.00% | $11.20 | 12.00% |
| 30.00% | $11.20 | 12.00% |
| 50.00% | $11.20 | 12.00% |
| 100.00% | $11.20 | 12.00% |
The Redemption Amount per unit cannot exceed the hypothetical Capped Value.
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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 coupon will the BMO Barrier Notes pay?
How is principal affected if the 75% trigger is breached?
Which index levels are used as triggers?
Will the notes be listed for trading?
What is the estimated initial value and why is it below par?
What are the key dates for investors?
