RBC to price leveraged market-linked notes on ETF basket

By Wendy Van Sickle

Columbus, Ohio, March 8 – Royal Bank of Canada plans to price 0% market-linked securities – leveraged upside participation and contingent downside principal at risk due April 4, 2022 linked to an ETF basket, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the iShares MSCI China ETF and the SPDR S&P 500 ETF Trust, each with a 50% weight.

If the basket closes at or above its initial level, the payout at maturity will be par plus 125% of the gain, up to a maximum payout of 148% to 153% of par.

If the basket falls by up to 20%, the payout will be par.

Otherwise, investors will lose 1% for each 1% decline of the basket from its initial level.

Wells Fargo Securities LLC is the agent.

The notes will price on March 28.

The Cusip number is 78013X2N7.

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