New Issue: RBC prices $500,000 1.75% absolute return notes linked to S&P 500

By Tali Rackner

Minneapolis, Feb. 2 – Royal Bank of Canada priced $500,000 of 1.75% interest-bearing barrier absolute return notes due July 29, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

If the index finishes above the initial level, the payout at maturity will be par.

If the index falls by up to 40%, the payout will be par plus the absolute value of the index return. Otherwise, investors will lose 1% for each 1% decline.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Interest-bearing barrier absolute return notes
Underlying index:	S&P 500
Amount:	$500,000
Maturity:	July 29, 2021
Coupon:	1.75%, payable monthly
Price:	Par of $1,000
Payout at maturity:	If index gains, par; if index falls by up to 40%, par plus absolute return; otherwise, 1% loss for each 1% decline
Initial index level:	2,872.87
Barrier level:	1,723.72, 60% of initial level
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Underwriter:	RBC Capital Markets, LLC
Fees:	2.25%
Cusip:	78013XDN5

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