New Issue: RBC sells $202,000 2.5-year absolute return notes tied to S&P 500

By Marisa Wong

Morgantown, W.Va., Dec. 8 – Royal Bank of Canada priced $202,000 of 0% absolute return notes due June 1, 2020 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is positive, the payout at maturity will be par plus 50% of the index return. If the final index level is less than or equal to the initial index level but greater than or equal to the buffer level, 78% of the initial index level, the payout will be par plus the absolute value of the index return. Investors will lose 1% for every 1% decline beyond the 22% buffer.

RBC Capital Markets LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Absolute return notes
Underlying index:	S&P 500
Amount:	$202,000
Maturity:	June 1, 2020
Coupon:	0%
Price:	Par
Payout at maturity:	If index return is positive, par plus 50% of index return; if final index level is less than or equal to initial index level but greater than or equal to buffer level, par plus absolute value of index return; otherwise, 1% loss for every 1% decline beyond 22%
Initial index level:	2,601.42
Buffer level:	2,029.11, 78% of initial level
Pricing date:	Nov. 27
Settlement date:	Nov. 30
Underwriter:	RBC Capital Markets LLC
Fees:	0.25%
Cusip:	78013GLE3

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