New Issue: RBC prices $13.05 million trigger gears linked to index basket

By Wendy Van Sickle

Columbus, Ohio, Feb. 1 – Royal Bank of Canada priced $13.05 million of 0% trigger gears due Jan. 31, 2029 linked to an unequally-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 2.34 times the basket return.

Investors will receive par if the basket declines by 25% or less and be fully exposed to the basket’s decline from its initial level if it declines by more than 25%.

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

Issuer:	Royal Bank of Canada
Issue:	Trigger gears
Underlying basket:	Euro Stoxx 50 index (40% weight), Nikkei 225 index (25% weight), FTSE 100 index (17.5% weight), Swiss Market index (10% weight), S&P/ASX 200 index (7.5% weight)
Amount:	$13,049,100
Maturity:	Jan. 31, 2029
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 2.34 times any basket gain; par if basket declines by 25% or less; otherwise, full exposure to basket decline from initial level
Initial levels:	4,639.36 for Stoxx, 36,026.94 for Nikkei, 7,632.74 for FTSE, 11,429.83 for Swiss, 7,578.445 for S&P/ASX
Barrier level:	75% of initial level
Pricing date:	Jan. 29
Settlement date:	Jan. 31
Agents:	RBC Capital Markets, LLC and UBS Financial Services Inc.
Fees:	3.5%
Cusip:	78016R322

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