New Issue: RBC prices $2.72 million capped gears on basket of SPDR sector funds

By William Gullotti

Buffalo, N.Y., Sept. 30 – Royal Bank of Canada priced $2.72 million of 0% capped gears due Nov. 30, 2023 linked to an equally-weighted basket consisting of the Energy Select Sector SPDR fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus triple any basket gain, subject to a maximum return of 31%.

Investors will be fully exposed to any basket decline.

RBC Capital Markets, LLC and UBS Financial Services Inc. are the agents.

Issuer:	Royal Bank of Canada
Issue:	Capped gears
Underlying funds:	Energy Select Sector SPDR fund, Financial Select Sector SPDR fund; equal weights
Amount:	$2,722,000
Maturity:	Nov. 30, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus three times any basket gain, capped at par plus 31%; full exposure to basket decline from initial level
Initial level:	$69.52 for Energy, $30.43 for Financial
Pricing date:	Sept. 27
Settlement date:	Sept. 30
Agents:	RBC Capital Markets, LLC and UBS Financial Services Inc.
Fees:	2%
Cusip:	78016D653

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