Royal Bank of Canada Launches Capped Enhanced Return Buffer Notes Linked to S&P 500

Royal Bank of Canada is introducing a new financial product called Capped Enhanced Return Buffer Notes, which are linked to the performance of the S&P 500® Index. These notes offer a capped enhanced return potential, meaning that if the final value of the S&P 500® Index is higher than its initial value, investors will receive a return equal to 150% of the index's return, up to a maximum of 12.55%. The notes also provide a contingent return of principal at maturity if the index's value falls within a specified buffer range.

The notes do not pay interest, and any payments are subject to the bank's credit risk. The initial estimated value of the notes is expected to be between $938.00 and $988.00 per $1,000 principal amount, which is less than the public offering price. The minimum investment for these notes is $1,000, and they will not be listed on any securities exchange.

The key terms of the notes include a participation rate of 150%, a maximum return of 12.55%, and a buffer percentage of 10%. The final underlier value will be determined by the arithmetic average of the closing values of the S&P 500® Index on specified dates. The maturity date for these notes is November 10, 2027.

Investors should be aware of the risks involved in investing in these notes, which are detailed in the pricing supplement and accompanying prospectus. The notes are not deposits insured by any governmental agency and are not subject to conversion into common shares under specific Canadian legislation.