RBC Launches Auto-Callable Notes Linked to Home Depot Stock
Royal Bank of Canada is introducing a new financial product called Auto-Callable Contingent Coupon Barrier Notes, linked to the performance of The Home Depot, Inc.'s common stock. These notes, set to mature on November 19, 2027, offer a contingent coupon rate of 11.05% per annum, paid monthly if the stock's closing value meets or exceeds 76% of its initial value.
The notes also feature an auto-call option. If the stock's value meets or exceeds its initial value on any monthly observation date starting six months after the trade date, the notes will be automatically called, returning 100% of the principal plus any due coupon. If not called, investors face potential losses at maturity if the stock value falls below the barrier threshold.
Investors should be aware of the risks, including the bank's credit risk and the potential for substantial losses. The notes will not be listed on any securities exchange and have an estimated initial value between $920.90 and $970.90 per $1,000 principal amount, which is less than the public offering price.
The offering is underwritten by RBC Capital Markets, LLC, with a minimum investment of $1,000. The trade date is set for October 16, 2026, and the issue date for October 21, 2026.