New Issue: RBC sells $2.04 million capped buffered return enhanced notes on SPDR fund

By Taylor Fox

New York, Jan. 21 – Royal Bank of Canada priced $2.04 million of capped buffered return enhanced notes due June 29, 2022 linked to the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is positive, the payout at maturity will be par plus two times the fund gain, capped at $145 per $1,000 of notes.

If the fund declines by up to 10%, the payout will be par. Investors will lose 1.1111% for each 1% decline beyond 10%.

RBC Capital Markets, LLC is the agent with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC acting as the placement agents.

Issuer:	Royal Bank of Canada
Issue:	Capped buffered return enhanced notes
Underlying fund:	Financial Select Sector SPDR Fund
Amount:	$2,041,000
Maturity:	June 29, 2022
Coupon:	0%
Price:	Par
Payout at maturity:	If the fund return is positive, the payout at maturity will be par plus two times the index gain, capped at $145 per $1,000 of notes; if the fund declines by up to 10%, the payout will be par; investors will lose 1.1111% for each 1% decline beyond 10%
Initial level:	$28.95
Buffer level:	$26.06, 90% of initial level
Pricing date:	Dec. 24
Settlement date:	Dec. 30
Agents:	RBC Capital Markets, LLC with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
Fees:	1.25%
Cusip:	78016ESB4

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