Published on 2/2/2024 in the Prospect News Structured Products Daily.
New Issue: RBC prices $358,000 buffered absolute return notes linked to basket of indexes, ETFs
By Kiku Steinfeld
Chicago, Feb. 2 – Royal Bank of Canada priced $358,000 of 0% buffered absolute return notes due Dec. 12, 2025 linked to an equally weighted basket consisting of the S&P 500 index with a 56% weight, the iShares MSCI EAFE ETF with a 23% weight, the Russell 2000 index with a 14% weight and the iShares MSCI Emerging Markets ETF with a 7% weight, according to a 424B2 filing with the Securities and Exchange Commission.
If the basket finishes above its initial level, the payout will be par plus 131.6% of the return of the basket.
If the basket finishes flat or falls by up to 20%, the payout will be par plus the absolute value of the return.
Otherwise, investors will lose 1% for every 1% decline of the basket beyond the 20% buffer.
RBC Capital Markets, LLC is the underwriter.
| Issuer: | Royal Bank of Canada
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| Issue: | Buffered absolute return notes
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| Underlying basket: | S&P 500 index (56% weight), iShares MSCI EAFE ETF (23% weight), Russell 2000 index (14% weight) and iShares MSCI Emerging Markets ETF (7% weight)
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| Amount: | $358,000
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| Maturity: | Dec. 12, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the basket finishes above its initial level, par plus 131.6% of the return of the basket; if the basket finishes flat or falls by up to buffer level, par plus the absolute value of the return of the basket; otherwise, 1% loss for every 1% decline of the basket beyond 20%
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| Initial level: | 4,298.86 for S&P, $71.52 for iShares MSCI EAFE, 1,865.706 for Russell, $39.86 for iShares MSCI EM
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| Buffer level: | 80% of initial level
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| Pricing date: | June 9, 2023
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| Settlement date: | June 14, 2023
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| Underwriter: | RBC Capital Markets, LLC
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| Fees: | 0.25%
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| Cusip: | 78016NGS0
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