RBC Files Free Writing Prospectus for S&P 500-Linked Dual Directional Buffer Notes

Royal Bank of Canada has filed a free writing prospectus (FWP) with the SEC detailing its Capped Return Dual Directional Buffer Notes linked to the S&P 500 Index. These notes are set to mature on October 31, 2028.

The notes have a capped upside return of at least 21%, and investors will receive $1,000 plus the lesser of the Underlier Return multiplied by the Participation Rate or the Maximum Upside Return if the Final Underlier Value exceeds the Initial Underlier Value. If the index declines but stays at or above 90% of its initial value, investors will receive a positive return equal to the absolute value of the negative Underlier Return, capped at 10%. However, if the Final Underlier Value falls below the Buffer Value, investors will incur a principal loss.

The notes do not provide interest payments and have an Initial Estimated Value ranging from $910.00 to $960.00 per $1,000 principal amount. Royal Bank of Canada revealed that it has filed the complete term sheet for these structured notes, featuring payoff mechanics, a 10% buffer, and principal-at-risk provisions.