New Issue: RBC sells $960,000 buffered enhanced return notes tied to basket of bank stocks

By Wendy Van Sickle

Columbus, Ohio, April 5 – Royal Bank of Canada priced $960,000 of 0% buffered enhanced return notes due Sept. 22, 2023 linked to an equally weighted basket of four common bank stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the stocks of Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co., each with a 25% weight.

If the basket return is positive, the payout at maturity will be par plus 125% of the basket return, capped at par plus 14%. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that the basket declines beyond 10%.

RBC Capital Markets, LLC is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Buffered enhanced return notes
Underlying stocks:	Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co., equal weights
Amount:	$960,000
Maturity:	Sept. 22, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	If basket return is positive, par plus 125% of basket return capped at par plus 14%; par if basket declines by 10% or less; 1% loss for every 1% that basket declines beyond 10%
Initial levels:	$38.53 for BofA, $73.01 for Citigroup, $155.14 for JPMorgan, $39.63 for Wells Fargo
Buffer level:	90% of initial level
Pricing date:	March 19
Settlement date:	March 24
Underwriter:	RBC Capital Markets, LLC
Fees:	2.25%
Cusip:	78016ELQ8

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