New Issue: RBC prices $117,000 buffer return notes on basket of ETFs

By Kiku Steinfeld

Chicago, Dec. 29 – Royal Bank of Canada priced $117,000 of 0% buffer return notes due Aug. 31, 2023 linked to an equally weighted basket of exchange-traded funds. The basket consists of the Financial Select Sector SPDR fund and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 1.5 times any basket gain, up to a maximum return of 21%.

Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Buffer return notes
Underlying components:	Financial Select Sector SPDR, Financial Select Sector SPDR, equal weights
Amount:	$117,000
Maturity:	Aug. 31, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 1.5 times any basket gain, up to 21%; par if basket declines by 10% or less; 1% loss for every 1% that basket declines beyond buffer
Initial basket level:	$48.03 for Energy, $38.49 for Financial
Buffer level:	90% of initial level
Pricing date:	Aug. 26
Settlement date:	Aug. 31
Agent:	RBC Capital Markets, LLC
Fees:	2.25%
Cusip:	78016EA56

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