Published on 6/23/2023 in the Prospect News Structured Products Daily.
New Issue: RBC sells $293,000 market-linked notes with contingent minimum and absolute return
By Kiku Steinfeld
Chicago, June 23 – Royal Bank of Canada priced $293,000 of 0% market-linked securities with upside participation with contingent minimum return, contingent absolute return and contingent downside due Feb. 3, 2028 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes 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 finishes at or above its initial level, the payout at maturity will be par plus the greater of 50% and the basket return.
If the basket declines, but not more than 25%, the payout will be par plus the absolute value of the basket return.
Otherwise, investors will lose 1% for each 1% decline of the basket.
Wells Fargo Securities, LLC is the agent for distribution and is acting as the principal agent.
| Issuer: | Royal Bank of Canada
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| Issue: | Market-linked securities –upside participation with contingent minimum return, contingent absolute return and contingent downside
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| Underlying basket: | 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)
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| Amount: | $293,000
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| Maturity: | Feb. 3, 2028
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If final basket level is greater than or equal to initial basket level, par plus greater of 50% and basket return; if basket declines below trigger level, par plus absolute value of basket return; otherwise, 1% loss for every 1% that final basket level is less than initial basket level
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| Initial level: | 4,163.45 for Stoxx, 27,327.11 for Nikkei, 7,771.70 for FTSE, 11,285.78 for Swiss, 7,476.661 for S&P/ASX
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| Trigger level: | 75% of initial basket level
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| Pricing date: | Jan. 31, 2023
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| Settlement date: | Feb. 3, 2023
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| Agent: | Wells Fargo Securities, LLC
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| Fees: | 3.62%
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| Cusip: | 78016HJG6
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