RBC Launches High-Risk Digital Notes Linked to Emerging Markets and EURO STOXX 50

Royal Bank of Canada (RBC) has introduced a new financial product called Dual Directional Barrier Digital Notes, designed to offer investors enhanced return potential linked to the performance of two underlying indices: the MSCI Emerging Markets Index (MXEF) and the EURO STOXX 50® Index (SX5E). The notes are due to mature on October 30, 2031, with a trade date set for October 28, 2026, and an issue date of October 30, 2026.

The product features a digital return of at least 63%, which will be determined on the trade date. Investors have the potential to receive a return based on the least performing of the two underliers. If the final value of the least performing underlier is greater than or equal to its initial value, investors will receive a return equal to the greater of the underlier return or the digital return. However, if the final value is below the barrier value (70% of the initial value), investors risk losing 1% of the principal for each 1% drop below the initial value.

The initial estimated value of the notes is expected to be between $880.00 and $930.00 per $1,000 principal amount, which is less than the public offering price. The notes do not pay interest, and investors should be aware of the significant risks involved, including the potential loss of a portion or all of the principal at maturity. The payment at maturity will be determined solely by the performance of the least performing underlier, even if the other underlier performs better.

RBC emphasizes that the notes are subject to various risks, including market disruptions, currency exchange risks, and the bank's own credit risk. Investors are advised to consult their financial advisers before investing in the notes. The registration statement for the offering is available on the SEC website, and interested parties can request the documents for free.