RBC Launches S&P 500-Linked Buffer Notes with At Least 20% Maximum Upside Return

Royal Bank of Canada (RBC) has announced the launch of its S&P 500-Linked Buffer Notes, which are set to mature on November 2, 2028. The notes have a unique payoff structure that aims to provide investors with returns tied to the performance of the S&P 500 Index.

The notes will have a maximum upside return of at least 20%, which will be finalized on the Trade Date, October 30, 2026. This means that if the index performs well, investors could receive up to 20% more than their initial investment, depending on the final value of the index.

However, there is a buffer percentage of 15%, which corresponds to an Initial Underlier Value of 85% of the S&P 500 Index. If the Final Underlier Value falls below this buffer level, investors will incur losses equal to 1% of principal for every 1% drop in the index beyond the 15% buffer.

The initial estimated value of the notes is between $920.30 and $970.30 per $1,000 principal amount, which is less than the public offering price. The filing also highlights risk factors including RBC's credit risk, uncertain U.S. federal income tax implications, potential lack of an active secondary market, and possible conflicts of interest due to RBC Capital Markets serving as Calculation Agent.