RBC plans absolute return barrier notes tied to iShares MSCI EAFE

By Toni Weeks

San Diego, Aug. 3 - Royal Bank of Canada plans to price 0% absolute return barrier notes due March 5, 2014 linked to the iShares MSCI EAFE index fund, according to an FWP filing with the Securities and Exchange Commission.

If the fund finishes above the initial price, the payout at maturity will be par plus the gain, subject to a maximum return of 17% to 21%.

If the fund return is negative or zero and the closing price is greater than or equal to the barrier level, 79% to 83% of the initial price, the payout at maturity will be par plus the absolute value of the decline in the price.

If the final price is less than the barrier level, investors will share in those losses.

The exact terms will be set at pricing.

The notes (Cusip: 78008SFJ0) are expected to price Aug. 28 and settle Aug. 31.

RBC Capital Markets, LLC is the agent.

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