New Issue: RBC prices $2.8 million bearish notes linked to index fund basket

By Angela McDaniels

Seattle, July 20 - Royal Bank of Canada priced a $2.8 million issue of 0% bearish leveraged equity investment notes due July 31, 2008 linked to equal weights of the iShares Dow Jones Financial Sector index fund and the iShares Dow Jones U.S. Regional Banks index fund, according to a 424B5 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 2% for each 1% decline in the basket, capped at a maximum return of 30%. Investors will lose 1% for each 1% basket gain, up to a maximum loss of 50%.

RBC Capital Markets Corp. is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Bearish leveraged equity investment notes
Underlying index funds:	iShares Dow Jones Financial Sector, iShares Dow Jones U.S. Regional Banks
Amount:	$2.8 million
Maturity:	July 31, 2008
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 2% for each 1% basket decline, capped at 30%; 1% loss for each 1% basket gain up to a maximum loss of 50%
Initial fund share prices:	$114.7454 for iShares Dow Jones Financial Sector; $48.7071 for iShares Dow Jones U.S. Regional Banks
Pricing date:	July 18
Settlement date:	July 23
Underwriter:	RBC Capital Markets Corp.
Fees:	2%

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