Royal Bank of Canada Launches Tech Stock Linked Notes with High Risk and Reward

The Royal Bank of Canada has unveiled plans for a new set of Market Linked Notes tied to the performance of Amazon, Alphabet, and Microsoft stocks. Filed on October 6, 2026, the prospectus outlines an auto-callable structure with a contingent coupon and memory feature. These notes will mature on October 12, 2029, and their performance will be linked to the lowest-performing stock among the three tech giants.

Each note has a face value of $1,000 and will be issued in multiples of $1,000. The contingent coupon rate starts at a minimum of 11.20% per annum, finalized on the pricing date of October 9, 2026. Coupon payments are contingent on the lowest-performing stock meeting or exceeding 60% of its initial value. The notes also include a memory feature, where missed coupon payments accumulate and are paid out later without interest.

Investors face a downside threshold of 50% of each stock's initial value. If the notes are not auto-called, evaluated monthly from April 2027 through September 2029, they will receive $1,000 at maturity if the lowest-performing stock meets or exceeds the downside threshold. Below this threshold, the payout is adjusted based on the stock's performance, exposing investors to potential losses beyond 50% of their principal.

The estimated value of the notes ranges from $919.90 to $969.90 per security, below the original offering price. An agent discount of up to 2.325% is available, with selling concessions up to 1.75% for dealers, including Wells Fargo Advisors. RBC Capital Markets, LLC, an affiliate of the issuer, serves as the calculation agent.