By Jennifer Chiou
New York, Aug. 28 - Royal Bank of Canada priced $1 million of principal-protected absolute return contingent coupon notes due Aug. 31, 2010 linked to the iShares MSCI Emerging Markets index fund, according to a 424B5 filing with the Securities and Exchange Commission.
If, during the term of the notes, shares of the fund close below 90% of the initial level and never close above 135% of the initial level - the barrier amounts - the payout will be par.
If the shares never close outside of the barrier range, investors will receive the absolute value of the return.
If the shares close above the upper barrier and do not close below the lower barrier, investors will receive the 10.5% contingent coupon.
If the shares ever close above and below the respective barriers, investors will receive par if the first barrier crossed is the lower barrier and will receive the contingent coupon if the first barrier crossed is the upper barrier.
RBC Capital Markets Corp. is the underwriter.
| Issuer: | Royal Bank of Canada
|
| Issue: | Principal-protected absolute return notes
|
| Underlying ETF: | iShares MSCI Emerging Markets index fund
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| Amount: | $1 million
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| Maturity: | Aug. 31, 2010
|
| Contingent coupon: | 10.5%
|
| Price: | Par
|
| Payout at maturity: | Par if, during the term of the notes, shares of the fund close below 90% of the initial level and never close above 135% of the initial level; if the shares never close outside of the barrier range, investors will receive the absolute value of the return; if the shares close above the upper barrier and do not close below the lower barrier, investors will receive the 10.5% contingent coupon; if the shares ever close above and below the respective barriers, investors will receive par if the first barrier crossed is the lower barrier and will receive the contingent coupon if the first barrier crossed is the upper barrier
|
| Initial share price: | $39.41
|
| Upper barrier: | $53.20, 135% of initial price
|
| Lower barrier: | $35.47, 90% of initial price
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 29
|
| Underwriter: | RBC Capital Markets Corp.
|
| Fees: | None
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