New Issue: RBC cuts principal-protected absolute return notes linked to iShares Russell 2000 to $955,000

By Jennifer Chiou

New York, Oct. 1 - Royal Bank of Canada downsized its issue of zero-coupon principal-protected absolute return notes due Sept. 30, 2010 linked to the iShares Russell 2000 index fund to $955,000 from $964,000, according to a 424B5 filing with the Securities and Exchange Commission.

If the fund shares never close above the upper barrier or below the lower barrier during the life of the notes, the payout at maturity will be par plus the absolute value of the fund return.

Investors will receive at least par.

The upper barrier is 133% of the initial fund price, and the lower barrier is 67% of the initial price.

RBC Capital Markets Corp. is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Principal-protected absolute return notes
Underlying shares:	iShares Russell 2000 index fund
Amount:	$955,000, downsized from $964,000
Maturity:	Sept. 30, 2010
Coupon:	0%
Price:	Par
Payout at maturity:	If fund shares stay within barriers during life of notes, par plus absolute value of fund return; floor of par
Initial fund price:	$70.30
Upper barrier:	$93.50, or 133% of initial price
Lower barrier:	$47.10, or 67% of initial price
Pricing date:	Sept. 25
Settlement date:	Sept. 30
Underwriter:	RBC Capital Markets Corp.
Fees:	2.25%

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