New Issue: RBC prices $2.1 million buffered absolute return notes linked to S&P, Dow

By William Gullotti

Buffalo, N.Y., Oct. 18 – Royal Bank of Canada priced $2.1 million of 0% buffered absolute return notes due Oct. 18, 2028 linked to the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

If each index finishes at or above its initial level, the payout will be par plus 1.23 times the return of the lesser performing index.

If either index finishes flat or falls by up to 20%, the payout will be par plus the absolute value of the return of that index.

Otherwise, investors will lose 1% for every 1% decline of the lesser performing index beyond the buffer.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Buffered absolute return notes
Underlying indexes:	S&P 500 index, Dow Jones industrial average
Amount:	$2.1 million
Maturity:	Oct. 18, 2028
Coupon:	0%
Price:	Par
Payout at maturity:	If each index finishes at or above its initial level, par plus 1.23 times the return of the lesser performing index; if either index finishes flat or falls by up to buffer level, par plus the absolute value of the return of that index; otherwise, 1% loss for every 1% decline of the lesser performing index beyond the buffer
Initial levels:	3,669.91 for S&P, 30,038.72 for Dow
Buffer levels:	2,935.93 for S&P, 24,030.98 for Dow, 80% of initial levels
Pricing date:	Oct. 13
Settlement date:	Oct. 18
Underwriter:	RBC Capital Markets, LLC
Fees:	2.5%
Cusip:	78016FZ72

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