New Issue: RBC prices $20.82 million capped gears linked to basket of five indexes

By Wendy Van Sickle

Columbus, Ohio, Sept. 23 – Royal Bank of Canada priced $20.82 million of 0% capped gears due Nov. 24, 2023 linked to a weighted basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 40% weight, the Nikkei 225 index with a 25% weight, the FTSE 100 index with a 17.5% weight, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a 7.5% weight.

If the basket return is greater than zero, the payout at maturity will be par of $10 plus triple the basket return, subject to a maximum payout of par plus 25.5%. If the basket return is negative, investors will have one-to-one exposure to the decline.

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

Issuer:	Royal Bank of Canada
Issue:	Capped gears
Underlying indexes:	Euro Stoxx 50 (40% weight), Nikkei 225 (25% weight), FTSE 100 (17.5% weight), Swiss Market (10% weight), S&P/ASX 200 (7.5% weight)
Amount:	$20,822,500
Maturity:	Nov. 24, 2023
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If basket return is greater than zero, par plus three times basket return capped at 25.5%; one-to-one exposure to any basket decline
Initial levels:	3,467.09 for Stoxx, 27,688.42 for Nikkei, 7,192.66 for FTSE, 10,476.54 for Swiss, 6,806.429 for S&P/ASX
Pricing date:	Sept. 20
Settlement date:	Sept. 22
Agents:	UBS Financial Services Inc. and RBC Capital Markets, LLC
Fees:	2%
Cusip:	78016D539

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