New Issue: RBC prices $1.23 million return enhanced notes tied to a weighted basket of indexes, ETFs

By William Gullotti

Buffalo, N.Y., Jan. 19 – Royal Bank of Canada priced $1.23 million of 0% return enhanced notes due Jan. 16, 2029 linked to a weighted basket of indexes and ETFs, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 40% weight, the Russell 2000 index with a 30% weight, the iShares MSCI EAFE ETF with a 20% weight and the iShares MSCI Emerging Markets ETF with a 10% weight.

If the basket return is positive, the payout at maturity will be par plus 124% of the gain.

Investors will receive par if the basket declines but finishes at or above its 65% barrier and will be fully exposed to the decline of the basket if it finishes below the barrier.

RBC Capital Markets, LLC is the agent.

Issuer:	Royal Bank of Canada
Issue:	Return enhanced notes
Underlying assets:	S&P 500 index (40% weight), Russell 2000 index (30% weight), iShares MSCI EAFE ETF (20% weight), iShares MSCI Emerging Markets ETF (10% weight)
Amount:	$1,231,000
Maturity:	Jan. 16, 2029
Coupon:	0%
Price:	Par
Payout at maturity:	If basket gains, par plus 124% of basket return; par if basket declines but finishes at or above barrier level; otherwise, lose 1% for each 1% of basket decline from its initial level
Initial levels:	4,783.45 for S&P, 1,970.261 for Russell, $74.77 for EAFE ETF, $38.90 for EM ETF
Barrier level:	65% of initial basket level
Pricing date:	Jan. 10
Settlement date:	Jan. 16
Agent:	RBC Capital Markets, LLC
Fees:	0.03%
Cusip:	78017FBM4

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