![](https://www.sec.gov/Archives/edgar/data/1000275/000095010324013371/image_001.jpg)
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Registration
Statement No. 333-275898
Filed
Pursuant to Rule 424(b)(2)
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Pricing Supplement
Pricing
Supplement dated September 6, 2024 to the Prospectus dated December 20, 2023, the Prospectus Supplement dated December 20, 2023,
the Underlying Supplement No. 1A dated May 16, 2024 and the Product Supplement No. 1A dated May 16, 2024
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$2,582,000
Contingent Coupon Barrier Notes
Linked to the Least Performing of Two Underliers,
Due September 11, 2029
Royal Bank of Canada |
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Royal
Bank of Canada is offering Contingent Coupon Barrier Notes (the “Notes”) linked to the performance of the least performing
of the Russell 2000® Index and the S&P 500® Index (each, an “Underlier”).
| · | Contingent
Coupons — Investors will receive a Contingent Coupon on a quarterly Coupon Payment
Date at a rate of 7.00% per annum if the closing value of each Underlier is greater than
or equal to its Coupon Threshold (65% of its Initial Underlier Value) on the immediately
preceding Coupon Observation Date. You may not receive any Contingent Coupons during the
term of the Notes. |
| · | Contingent
Return of Principal at Maturity — If the Final Underlier Value of the Least Performing
Underlier is greater than or equal to its Barrier Value (65% of its Initial Underlier Value),
at maturity, investors will receive the principal amount of their Notes plus the Contingent
Coupon otherwise due. If the Final Underlier Value of the Least Performing Underlier is less
than its Barrier Value, at maturity, investors will lose 1% of the principal amount of their
Notes for each 1% that the Final Underlier Value of the Least Performing Underlier is less
than its Initial Underlier Value. |
| · | Any
payments on the Notes are subject to our credit risk. |
| · | The
Notes will not be listed on any securities exchange. |
CUSIP:
78017GKU4
Investing
in the Notes involves a number of risks. See “Selected Risk Considerations” beginning on page P-7 of this pricing supplement
and “Risk Factors” in the accompanying prospectus, prospectus supplement and product supplement.
None
of the Securities and Exchange Commission (the “SEC”), any state securities commission or any other regulatory body has approved
or disapproved of the Notes or passed upon the adequacy or accuracy of this pricing supplement. Any representation to the contrary is
a criminal offense. The Notes will not constitute deposits insured by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit
Insurance Corporation or any other Canadian or U.S. governmental agency or instrumentality. The Notes are not bail-inable notes and are
not subject to conversion into our common shares under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.
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Per Note |
Total |
Price to public |
100.00% |
$2,582,000 |
Underwriting discounts and commissions(1) |
0.00% |
$0 |
Proceeds to Royal Bank of Canada |
100.00% |
$2,582,000 |
(1) RBC Capital Markets, LLC, acting
as our agent, will not receive a commission in connection with its sales of the Notes. We or one of our affiliates may pay a broker-dealer
that is not affiliated with us a structuring fee of up to $8.50 per $1,000 principal amount of Notes. See “Supplemental Plan of
Distribution (Conflicts of Interest)” below.
The initial estimated value of the Notes determined
by us as of the Trade Date, which we refer to as the initial estimated value, is $986.32 per $1,000 principal amount of Notes and is less
than the public offering price of the Notes. The market value of the Notes at any time will reflect many factors, cannot be predicted
with accuracy and may be less than this amount. We describe the determination of the initial estimated value in more detail below.
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
KEY TERMS
The
information in this “Key Terms” section is qualified by any more detailed information set forth in this pricing supplement
and in the accompanying prospectus, prospectus supplement, underlying supplement and product supplement.
Issuer: |
Royal Bank of Canada |
Underwriter: |
RBC Capital Markets, LLC (“RBCCM”) |
Minimum Investment: |
$1,000 and minimum denominations of $1,000 in excess thereof |
Underliers: |
The Russell 2000® Index (the “RTY Index”) and the S&P 500® Index (the “SPX Index”) |
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Underlier |
Bloomberg Ticker |
Initial Underlier Value(1) |
Coupon Threshold and Barrier Value(2) |
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RTY Index |
RTY |
2,091.408 |
1,359.415 |
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SPX Index |
SPX |
5,408.42 |
3,515.47 |
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(1)
With respect to each Underlier, the closing value of that Underlier on the Trade Date |
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(2)
With respect to each Underlier, 65% of its Initial Underlier Value (rounded to three decimal places for the RTY Index and rounded
to two decimal places for the SPX Index) |
Trade Date: |
September 6, 2024 |
Issue Date: |
September 11, 2024 |
Valuation Date:* |
September 6, 2029 |
Maturity Date:* |
September 11, 2029 |
Payment of Contingent Coupons: |
Investors will receive a Contingent Coupon
on a Coupon Payment Date if the closing value of each Underlier is greater than or equal to its Coupon Threshold on the
immediately preceding Coupon Observation Date.
No Contingent Coupon will be payable on
a Coupon Payment Date if the closing value of any Underlier is less than its Coupon Threshold on the immediately preceding Coupon Observation
Date. Accordingly, you may not receive a Contingent Coupon on one or more Coupon Payment Dates during the term of the Notes. |
Contingent Coupon: |
If payable, $17.50 per $1,000 principal amount of Notes (corresponding to a rate of 1.75% per quarter or 7.00% per annum) |
Payment at Maturity: |
Investors will receive on the Maturity Date
per $1,000 principal amount of Notes, in addition to any Contingent Coupon otherwise due:
· If
the Final Underlier Value of the Least Performing Underlier is greater than or equal to its Barrier Value: $1,000
· If
the Final Underlier Value of the Least Performing Underlier is less than its Barrier Value, an amount equal to:
$1,000 + ($1,000 × Underlier
Return of the Least Performing Underlier)
If the Final Underlier Value of the Least
Performing Underlier is less than its Barrier Value, you will lose a substantial portion or all of your principal amount at maturity.
All payments on the Notes are subject to our credit risk. |
Underlier Return: |
With respect to each Underlier, the Underlier
Return, expressed as a percentage, is calculated using the following formula:
Final Underlier Value – Initial Underlier
Value
Initial Underlier Value |
P-2 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
Final Underlier Value: |
With respect to each Underlier, the closing value of that Underlier on the Valuation Date |
Least Performing Underlier: |
The Underlier with the lowest Underlier Return |
Coupon Observation Dates:* |
Quarterly, as set forth in the table below |
Coupon Payment Dates:* |
Quarterly, as set forth in the table below |
Calculation Agent: |
RBCCM |
Coupon Observation Dates* |
Coupon Payment Dates* |
December 6, 2024 |
December 11, 2024 |
March 6, 2025 |
March 11, 2025 |
June 6, 2025 |
June 11, 2025 |
September 8, 2025 |
September 11, 2025 |
December 8, 2025 |
December 11, 2025 |
March 6, 2026 |
March 11, 2026 |
June 8, 2026 |
June 11, 2026 |
September 8, 2026 |
September 11, 2026 |
December 7, 2026 |
December 10, 2026 |
March 8, 2027 |
March 11, 2027 |
June 7, 2027 |
June 10, 2027 |
September 7, 2027 |
September 10, 2027 |
December 6, 2027 |
December 9, 2027 |
March 6, 2028 |
March 9, 2028 |
June 6, 2028 |
June 9, 2028 |
September 6, 2028 |
September 11, 2028 |
December 6, 2028 |
December 11, 2028 |
March 6, 2029 |
March 9, 2029 |
June 6, 2029 |
June 11, 2029 |
September 6, 2029 (the Valuation Date) |
September 11, 2029 (the Maturity Date) |
* Subject to postponement. See “General Terms of the Notes—Postponement
of a Determination Date” and “General Terms of the Notes—Postponement of a Payment Date” in the accompanying product
supplement.
P-3 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
ADDITIONAL TERMS OF YOUR NOTES
You
should read this pricing supplement together with the prospectus dated December 20, 2023, as supplemented by the prospectus supplement
dated December 20, 2023, relating to our Senior Global Medium-Term Notes, Series J, of which the Notes are a part, the underlying supplement
no. 1A dated May 16, 2024 and the product supplement no. 1A dated May 16, 2024. This pricing supplement, together with these documents,
contains the terms of the Notes and supersedes all other prior or contemporaneous oral statements as well as any other written materials,
including preliminary or indicative pricing terms, correspondence, trade ideas, structures for implementation, sample structures, fact
sheets, brochures or other educational materials of ours.
We
have not authorized anyone to provide any information or to make any representations other than those contained or incorporated by reference
in this pricing supplement and the documents listed below. We take no responsibility for, and can provide no assurance as to the reliability
of, any other information that others may give you. These documents are an offer to sell only the Notes offered hereby, but only under
circumstances and in jurisdictions where it is lawful to do so. The information contained in each such document is current only as of
its date.
If
the information in this pricing supplement differs from the information contained in the documents listed below, you should rely on the
information in this pricing supplement.
You
should carefully consider, among other things, the matters set forth in “Selected Risk Considerations” in this pricing supplement
and “Risk Factors” in the documents listed below, as the Notes involve risks not associated with conventional debt securities.
We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes.
You
may access these documents on the SEC website at www.sec.gov as follows (or if such address has changed, by reviewing our filings for
the relevant date on the SEC website):
| · | Prospectus
dated December 20, 2023: |
https://www.sec.gov/Archives/edgar/data/1000275/000119312523299520/d645671d424b3.htm
| · | Prospectus
Supplement dated December 20, 2023: |
https://www.sec.gov/Archives/edgar/data/1000275/000119312523299523/d638227d424b3.htm
| · | Underlying
Supplement No. 1A dated May 16, 2024: |
https://www.sec.gov/Archives/edgar/data/1000275/000095010324006773/dp211259_424b2-us1a.htm
| · | Product
Supplement No. 1A dated May 16, 2024: |
https://www.sec.gov/Archives/edgar/data/1000275/000095010324006777/dp211286_424b2-ps1a.htm
Our
Central Index Key, or CIK, on the SEC website is 1000275. As used in this pricing supplement, “Royal Bank of Canada,” the
“Bank,” “we,” “our” and “us” mean only Royal Bank of Canada.
P-4 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
HYPOTHETICAL RETURNS
The
table and examples set forth below illustrate hypothetical payments at maturity for hypothetical performance of the Least Performing
Underlier, based on its Coupon Threshold and Barrier Value of 65% of its Initial Underlier Value and the Contingent Coupon of $17.50
per $1,000 principal amount of Notes. The table and examples below do not account for any Contingent Coupons that may be paid prior
to maturity. The table and examples are only for illustrative purposes and may not show the actual return applicable to investors.
Hypothetical Underlier Return of the Least Performing Underlier |
Payment at Maturity per $1,000 Principal Amount of Notes* |
Payment at Maturity as Percentage of Principal Amount* |
50.00% |
$1,017.50 |
101.750% |
40.00% |
$1,017.50 |
101.750% |
30.00% |
$1,017.50 |
101.750% |
20.00% |
$1,017.50 |
101.750% |
10.00% |
$1,017.50 |
101.750% |
5.00% |
$1,017.50 |
101.750% |
0.00% |
$1,017.50 |
101.750% |
-5.00% |
$1,017.50 |
101.750% |
-10.00% |
$1,017.50 |
101.750% |
-20.00% |
$1,017.50 |
101.750% |
-30.00% |
$1,017.50 |
101.750% |
-35.00% |
$1,017.50 |
101.750% |
-35.01% |
$649.90 |
64.990% |
-40.00% |
$600.00 |
60.000% |
-50.00% |
$500.00 |
50.000% |
-60.00% |
$400.00 |
40.000% |
-70.00% |
$300.00 |
30.000% |
-80.00% |
$200.00 |
20.000% |
-90.00% |
$100.00 |
10.000% |
-100.00% |
$0.00 |
0.000% |
| * | Including any Contingent Coupon otherwise
due |
Example 1 — |
The value of the Least
Performing Underlier increases from its Initial Underlier Value to its Final Underlier Value by 30%. |
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Underlier
Return of the Least Performing Underlier: |
30% |
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Payment at Maturity: |
$1,000 + Contingent Coupon otherwise
due = $1,000 + $17.50 = $1,017.50 |
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In
this example, the payment at maturity is $1,017.50 per $1,000 principal amount of Notes.
Because
the Final Underlier Value of the Least Performing Underlier is greater than its Coupon Threshold and Barrier Value, investors receive
a full return of the principal amount of their Notes plus the Contingent Coupon otherwise due. This example illustrates that
investors do not participate in any appreciation of the Least Performing Underlier, which may be significant. |
P-5 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
Example 2 — |
The value of the Least
Performing Underlier decreases from its Initial Underlier Value to its Final Underlier Value by 10% (i.e., its Final Underlier Value
is below its Initial Underlier Value but above its Coupon Threshold and Barrier Value). |
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Underlier
Return of the Least Performing Underlier: |
-10% |
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Payment at Maturity: |
$1,000 + Contingent Coupon otherwise
due = $1,000 + $17.50 = $1,017.50 |
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In
this example, the payment at maturity is $1,017.50 per $1,000 principal amount of Notes.
Because
the Final Underlier Value of the Least Performing Underlier is greater than its Coupon Threshold and Barrier Value, investors receive
a full return of the principal amount of their Notes plus the Contingent Coupon otherwise due. |
Example 3 — |
The value of the Least
Performing Underlier decreases from its Initial Underlier Value to its Final Underlier Value by 50% (i.e., its Final Underlier Value
is below its Coupon Threshold and Barrier Value). |
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Underlier
Return of the Least Performing Underlier: |
-50% |
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Payment at Maturity: |
$1,000 + ($1,000 × -50%) = $1,000
– $500 = $500 |
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In
this example, the payment at maturity is $500 per $1,000 principal amount of Notes, representing a loss of 50% of the principal amount.
Because
the Final Underlier Value of the Least Performing Underlier is less than its Barrier Value, investors do not receive a full return
of the principal amount of their Notes. In addition, because the Final Underlier Value of the Least Performing Underlier is less
than its Coupon Threshold, investors do not receive a Contingent Coupon at maturity. |
Investors in
the Notes could lose a substantial portion or all of the principal amount of their Notes at maturity.
P-6 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
SELECTED RISK CONSIDERATIONS
An
investment in the Notes involves significant risks. We urge you to consult your investment, legal, tax, accounting and other advisers
before you invest in the Notes. Some of the risks that apply to an investment in the Notes are summarized below, but we urge you to read
also the “Risk Factors” sections of the accompanying prospectus, prospectus supplement and product supplement. You should
not purchase the Notes unless you understand and can bear the risks of investing in the Notes.
Risks
Relating to the Terms and Structure of the Notes
| · | You
May Lose a Portion or All of the Principal Amount at Maturity — If the Final Underlier
Value of the Least Performing Underlier is less than its Barrier Value, you will lose 1%
of the principal amount of your Notes for each 1% that the Final Underlier Value of the Least
Performing Underlier is less than its Initial Underlier Value. You could lose a substantial
portion or all of your principal amount at maturity. |
| · | You
May Not Receive Any Contingent Coupons — We will not necessarily pay any Contingent
Coupons on the Notes. If the closing value of any Underlier is less than its Coupon Threshold
on a Coupon Observation Date, we will not pay you the Contingent Coupon applicable to that
Coupon Observation Date. If the closing value of any Underlier is less than its Coupon Threshold
on each of the Coupon Observation Dates, we will not pay you any Contingent Coupons during
the term of, and you will not receive a positive return on, your Notes. Generally, this non-payment
of the Contingent Coupon coincides with a greater risk of principal loss on your Notes. Even
if your return is positive, your return may be less than the return you would earn if you
purchased one of our conventional senior interest-bearing debt securities. |
| · | Any
Payment on the Notes Will Be Determined Solely by the Performance of the Underlier with the
Worst Performance Even If the Other Underlier Performs Better — Any payment on
the Notes will be determined solely by the performance of the Underlier with the worst performance.
The Notes are not linked to a weighted basket, in which the risk may be mitigated and diversified
among each of the basket components. In the case of the Notes, the individual performance
of the Underliers will not be combined, and the adverse performance of one Underlier will
not be mitigated by any appreciation of the other Underlier. The Underliers may be uncorrelated
and may not perform similarly over the term of the Notes, which may increase your risk of
loss on the Notes and the risk that you will receive few or no Contingent Coupons. |
| · | You
Will Not Participate in Any Appreciation of Any Underlier, and Any Potential Return on the
Notes Is Limited — The return on the Notes is limited to the Contingent Coupons,
if any, that may be payable on the Notes, regardless of any appreciation of any Underlier,
which may be significant. As a result, the return on an investment in the Notes could be
less than the return on a direct investment in any Underlier. |
| · | Payments
on the Notes Are Subject to Our Credit Risk, and Market Perceptions about Our Creditworthiness
May Adversely Affect the Market Value of the Notes — The Notes are our senior unsecured
debt securities, and your receipt of any amounts due on the Notes is dependent upon our ability
to pay our obligations as they come due. If we were to default on our payment obligations,
you may not receive any amounts owed to you under the Notes and you could lose your entire
investment. In addition, any negative changes in market perceptions about our creditworthiness
may adversely affect the market value of the Notes. |
| · | Any
Payment on the Notes Will Be Determined Based on the Closing Values of the Underliers on
the Dates Specified — Any payment on the Notes will be determined based on the
closing values of the Underliers on the dates specified. You will not benefit from any more
favorable values of the Underliers determined at any other time. |
| · | The
U.S. Federal Income Tax Consequences of an Investment in the Notes Are Uncertain —
There is no direct legal authority regarding the proper U.S. federal income tax treatment
of the Notes, and significant aspects of the tax treatment of the Notes are uncertain. Moreover,
non-U.S. investors should note that persons having withholding responsibility in respect
of the Notes may withhold on any coupon paid to a non-U.S. investor, generally at a rate
of 30%. We will not pay any additional amounts in respect of such withholding. You should
review carefully the section |
P-7 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
entitled
“United States Federal Income Tax Considerations” herein, in combination with the section entitled “United States Federal
Income Tax Considerations” in the accompanying product supplement, and consult your tax adviser regarding the U.S. federal income
tax consequences of an investment in the Notes.
Risks
Relating to the Initial Estimated Value of the Notes and the Secondary Market for the Notes
| · | There
May Not Be an Active Trading Market for the Notes; Sales in the Secondary Market May Result
in Significant Losses — There may be little or no secondary market for the Notes.
The Notes will not be listed on any securities exchange. RBCCM and our other affiliates may
make a market for the Notes; however, they are not required to do so and, if they choose
to do so, may stop any market-making activities at any time. Because other dealers are not
likely to make a secondary market for the Notes, the price at which you may be able to trade
your Notes is likely to depend on the price, if any, at which RBCCM or any of our other affiliates
is willing to buy the Notes. Even if a secondary market for the Notes develops, it may not
provide enough liquidity to allow you to easily trade or sell the Notes. We expect that transaction
costs in any secondary market would be high. As a result, the difference between bid and
ask prices for your Notes in any secondary market could be substantial. If you sell your
Notes before maturity, you may have to do so at a substantial discount from the price that
you paid for them, and as a result, you may suffer significant losses. The Notes are not
designed to be short-term trading instruments. Accordingly, you should be able and willing
to hold your Notes to maturity. |
| · | The
Initial Estimated Value of the Notes Is Less Than the Public Offering Price — The
initial estimated value of the Notes is less than the public offering price of the Notes
and does not represent a minimum price at which we, RBCCM or any of our other affiliates
would be willing to purchase the Notes in any secondary market (if any exists) at any time.
If you attempt to sell the Notes prior to maturity, their market value may be lower than
the price you paid for them and the initial estimated value. This is due to, among other
things, changes in the values of the Underliers, the internal funding rate we pay to issue
securities of this kind (which is lower than the rate at which we borrow funds by issuing
conventional fixed rate debt) and the inclusion in the public offering price of the structuring
fee, our estimated profit and the estimated costs relating to our hedging of the Notes. These
factors, together with various credit, market and economic factors over the term of the Notes,
are expected to reduce the price at which you may be able to sell the Notes in any secondary
market and will affect the value of the Notes in complex and unpredictable ways. Assuming
no change in market conditions or any other relevant factors, the price, if any, at which
you may be able to sell your Notes prior to maturity may be less than your original purchase
price, as any such sale price would not be expected to include the structuring fee, our estimated
profit or the hedging costs relating to the Notes. In addition, any price at which you may
sell the Notes is likely to reflect customary bid-ask spreads for similar trades. In addition
to bid-ask spreads, the value of the Notes determined for any secondary market price is expected
to be based on a secondary market rate rather than the internal funding rate used to price
the Notes and determine the initial estimated value. As a result, the secondary market price
will be less than if the internal funding rate were used. |
| · | The
Initial Estimated Value of the Notes Is Only an Estimate, Calculated as of the Trade Date
— The initial estimated value of the Notes is based on the value of our obligation
to make the payments on the Notes, together with the mid-market value of the derivative embedded
in the terms of the Notes. See “Structuring the Notes” below. Our estimate is
based on a variety of assumptions, including our internal funding rate (which represents
a discount from our credit spreads), expectations as to dividends, interest rates and volatility
and the expected term of the Notes. These assumptions are based on certain forecasts about
future events, which may prove to be incorrect. Other entities may value the Notes or similar
securities at a price that is significantly different than we do. |
The
value of the Notes at any time after the Trade Date will vary based on many factors, including changes in market conditions, and cannot
be predicted with accuracy. As a result, the actual value you would receive if you sold the Notes in any secondary market, if any, should
be expected to differ materially from the initial estimated value of the Notes.
Risks
Relating to Conflicts of Interest and Our Trading Activities
| · | Our
and Our Affiliates’ Business and Trading Activities May Create Conflicts of Interest
— You should make your own independent investigation of the merits of investing
in the Notes. Our and our affiliates’ economic interests are potentially adverse to
your interests as an investor in the Notes due to our and our affiliates’ business
and trading |
P-8 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
activities,
and we and our affiliates have no obligation to consider your interests in taking any actions that might affect the value of the Notes.
Trading by us and our affiliates may adversely affect the values of the Underliers and the market value of the Notes. See “Risk
Factors—Risks Relating to Conflicts of Interest” in the accompanying product supplement.
| · | RBCCM’s
Role as Calculation Agent May Create Conflicts of Interest — As Calculation Agent,
our affiliate, RBCCM, will determine any values of the Underliers and make any other determinations
necessary to calculate any payments on the Notes. In making these determinations, the Calculation
Agent may be required to make discretionary judgments, including those described under “—Risks
Relating to the Underliers” below. In making these discretionary judgments, the economic
interests of the Calculation Agent are potentially adverse to your interests as an investor
in the Notes, and any of these determinations may adversely affect any payments on the Notes.
The Calculation Agent will have no obligation to consider your interests as an investor in
the Notes in making any determinations with respect to the Notes. |
Risks
Relating to the Underliers
| · | You
Will Not Have Any Rights to the Securities Included in Any Underlier — As an investor
in the Notes, you will not have voting rights or rights to receive dividends or other distributions
or any other rights with respect to the securities included in any Underlier. Each Underlier
is a price return index and its return does not reflect regular cash dividends paid by its
components. |
| · | The
Notes Are Subject to Small-Capitalization Companies Risk with Respect to the RTY Index
— The RTY Index tracks securities issued by companies with relatively small market
capitalizations. These companies often have greater stock price volatility, lower trading
volume and less liquidity than large-capitalization companies. As a result, the value of
the RTY Index may be more volatile than that of a market measure that does not track solely
small-capitalization stocks. Stock prices of small-capitalization companies are also generally
more vulnerable than those of large-capitalization companies to adverse business and economic
developments, and the stocks of small-capitalization companies may be thinly traded and may
be less attractive to many investors if they do not pay dividends. In addition, small-capitalization
companies are often less well-established and less stable financially than large-capitalization
companies and may depend on a small number of key personnel, making them more vulnerable
to loss of personnel. Small-capitalization companies are often subject to less analyst coverage
and may be in early, and less predictable, periods of their corporate existences. Small-capitalization
companies tend to have lower revenues, less diverse product lines, smaller shares of their
target markets, fewer financial resources and fewer competitive strengths than large-capitalization
companies. These companies may also be more susceptible to adverse developments related to
their products or services. |
| · | Any
Payment on the Notes May Be Postponed and Adversely Affected by the Occurrence of a Market
Disruption Event — The timing and amount of any payment on the Notes is subject
to adjustment upon the occurrence of a market disruption event affecting an Underlier. If
a market disruption event persists for a sustained period, the Calculation Agent may make
a determination of the closing value of any affected Underlier. See “General Terms
of the Notes—Indices—Market Disruption Events,” “General Terms of
the Notes—Postponement of a Determination Date” and “General Terms of the
Notes—Postponement of a Payment Date” in the accompanying product supplement. |
| · | Adjustments
to an Underlier Could Adversely Affect Any Payments on the Notes — The sponsor
of an Underlier may add, delete, substitute or adjust the securities composing that Underlier
or make other methodological changes to that Underlier that could affect its performance.
The Calculation Agent will calculate the value to be used as the closing value of an Underlier
in the event of certain material changes in, or modifications to, that Underlier. In addition,
the sponsor of an Underlier may also discontinue or suspend calculation or publication of
that Underlier at any time. Under these circumstances, the Calculation Agent may select a
successor index that the Calculation Agent determines to be comparable to the discontinued
Underlier or, if no successor index is available, the Calculation Agent will determine the
value to be used as the closing value of that Underlier. Any of these actions could adversely
affect the value of an Underlier and, consequently, the value of the Notes. See “General
Terms of the Notes—Indices—Discontinuation of, or Adjustments to, an Index”
in the accompanying product supplement. |
P-9 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
INFORMATION REGARDING THE UNDERLIERS
The RTY Index measures
the capitalization-weighted price performance of 2,000 U.S. small-capitalization stocks listed on eligible U.S. exchanges and is designed
to track the performance of the small-capitalization segment of the U.S. equity market. For more information about the RTY Index, see
“Indices—The Russell Indices” in the accompanying underlying supplement.
The SPX Index consists
of stocks of 500 companies selected to provide a performance benchmark for the U.S. equity markets. For more information about the SPX
Index, see “Indices—The S&P U.S. Indices” in the accompanying underlying supplement.
Historical
Information
The
following graphs set forth historical closing values of the Underliers for the period from January 1, 2014 to September 6, 2024. Each
red line represents the Coupon Threshold and Barrier Value of the relevant Underlier. We obtained the information in the graphs from
Bloomberg Financial Markets, without independent investigation. We cannot give you assurance that the performance of the Underliers
will result in the return of all of your initial investment.
Russell
2000® Index
![](https://www.sec.gov/Archives/edgar/data/1000275/000095010324013371/image_002.jpg)
PAST
PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
P-10 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
S&P
500® Index
![](https://www.sec.gov/Archives/edgar/data/1000275/000095010324013371/image_003.jpg)
PAST
PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
P-11 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
UNITED STATES FEDERAL INCOME
TAX CONSIDERATIONS
You
should review carefully the section in the accompanying product supplement entitled “United States Federal Income Tax Considerations.”
The following discussion, when read in combination with that section, constitutes the full opinion of our counsel, Davis Polk & Wardwell
LLP, regarding the material U.S. federal income tax consequences of owning and disposing of the Notes.
Generally,
this discussion assumes that you purchased the Notes for cash in the original issuance at the stated issue price and does not address
other circumstances specific to you, including consequences that may arise due to any other investments relating to the Underliers. You
should consult your tax adviser regarding the effect any such circumstances may have on the U.S. federal income tax consequences of your
ownership of a Note.
In
the opinion of our counsel, it is reasonable to treat the Notes for U.S. federal income tax purposes as prepaid financial contracts with
associated coupons, and any coupons as ordinary income, as described in the section entitled “United States Federal Income Tax
Considerations—Tax Consequences to U.S. Holders—Notes Treated as Prepaid Financial Contracts with Associated Coupons”
in the accompanying product supplement. There is uncertainty regarding this treatment, and the Internal Revenue Service (the “IRS”)
or a court might not agree with it. A different tax treatment could be adverse to you.
We
do not plan to request a ruling from the IRS regarding the treatment of the Notes. An alternative characterization of the Notes could
materially and adversely affect the tax consequences of ownership and disposition of the Notes, including the timing and character of
income recognized. In addition, the U.S. Treasury Department and the IRS have requested comments on various issues regarding the U.S.
federal income tax treatment of “prepaid forward contracts” and similar financial instruments and have indicated that such
transactions may be the subject of future regulations or other guidance. Furthermore, members of Congress have proposed legislative changes
to the tax treatment of derivative contracts. Any legislation, Treasury regulations or other guidance promulgated after consideration
of these issues could materially and adversely affect the tax consequences of an investment in the Notes, possibly with retroactive effect.
Non-U.S.
Holders. The U.S. federal income tax treatment of the coupons is unclear. To the extent that we have withholding responsibility in
respect of the Notes, we would expect generally to treat the coupons as subject to U.S. withholding tax. Moreover, you should expect
that, if the applicable withholding agent determines that withholding tax should apply, it will be at a rate of 30% (or lower treaty
rate). In order to claim an exemption from, or a reduction in, the 30% withholding under an applicable treaty, you may need to comply
with certification requirements to establish that you are not a U.S. person and are eligible for such an exemption or reduction under
an applicable tax treaty. You should consult your tax adviser regarding the tax treatment of the coupons.
As
discussed under “United States Federal Income Tax Considerations—Tax Consequences to Non-U.S. Holders—Dividend Equivalents
under Section 871(m) of the Code” in the accompanying product supplement, Section 871(m) of the Internal Revenue Code and Treasury
regulations promulgated thereunder (“Section 871(m)”) generally impose a 30% withholding tax on dividend equivalents paid
or deemed paid to Non-U.S. Holders with respect to certain financial instruments linked to U.S. equities or indices that include U.S.
equities. The Treasury regulations, as modified by an IRS notice, exempt financial instruments issued prior to January 1, 2027 that do
not have a “delta” of one. Based on certain determinations made by us, our counsel is of the opinion that Section 871(m)
should not apply to the Notes with regard to Non-U.S. Holders. Our determination is not binding on the IRS, and the IRS may disagree
with this determination.
We
will not be required to pay any additional amounts with respect to U.S. federal withholding taxes.
You
should consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the Notes, including possible
alternative treatments, as well as tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.
P-12 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
SUPPLEMENTAL PLAN OF DISTRIBUTION
(CONFLICTS OF INTEREST)
The
Notes are offered initially to investors at a purchase price equal to par. We or one of our affiliates may pay a broker-dealer that is
not affiliated with us a structuring fee as set forth on the cover page of this pricing supplement.
The
value of the Notes shown on your account statement may be based on RBCCM’s estimate of the value of the Notes if RBCCM or another
of our affiliates were to make a market in the Notes (which it is not obligated to do). That estimate will be based on the price that
RBCCM may pay for the Notes in light of then-prevailing market conditions, our creditworthiness and transaction costs. For a period of
approximately twelve months after the Issue Date, the value of the Notes that may be shown on your account statement may be higher than
RBCCM’s estimated value of the Notes at that time. This is because the estimated value of the Notes will not include the structuring
fee or our hedging costs and profits; however, the value of the Notes shown on your account statement during that period may initially
be a higher amount, reflecting the addition of the structuring fee and our estimated costs and profits from hedging the Notes. This excess
is expected to decrease over time until the end of this period. After this period, if RBCCM repurchases your Notes, it expects to do
so at prices that reflect their estimated value.
RBCCM
or another of its affiliates or agents may use this pricing supplement in the initial sale of the Notes. In addition, RBCCM or another
of our affiliates may use this pricing supplement in a market-making transaction in the Notes after their initial sale. Unless
we or our agent informs the purchaser otherwise in the confirmation of sale, this pricing supplement is being used in a market-making
transaction.
For
additional information about the settlement cycle of the Notes, see “Plan of Distribution” in the accompanying prospectus.
For additional information as to the relationship between us and RBCCM, see the section “Plan of Distribution—Conflicts of
Interest” in the accompanying prospectus.
STRUCTURING THE NOTES
The
Notes are our debt securities. As is the case for all of our debt securities, including our structured notes, the economic terms of the
Notes reflect our actual or perceived creditworthiness. In addition, because structured notes result in increased operational, funding
and liability management costs to us, we typically borrow the funds under structured notes at a rate that is lower than the rate that
we might pay for a conventional fixed or floating rate debt security of comparable maturity. The lower internal funding rate, the structuring
fee and the hedging-related costs relating to the Notes reduce the economic terms of the Notes to you and result in the initial estimated
value for the Notes being less than their public offering price. Unlike the initial estimated value, any value of the Notes determined
for purposes of a secondary market transaction may be based on a secondary market rate, which may result in a lower value for the Notes
than if our initial internal funding rate were used.
In
order to satisfy our payment obligations under the Notes, we may choose to enter into certain hedging arrangements (which may include
call options, put options or other derivatives) with RBCCM and/or one of our other subsidiaries. The terms of these hedging arrangements
take into account a number of factors, including our creditworthiness, interest rate movements, volatility and the tenor of the Notes.
The economic terms of the Notes and the initial estimated value depend in part on the terms of these hedging arrangements.
See
“Selected Risk Considerations—Risks Relating to the Initial Estimated Value of the Notes and the Secondary Market for the
Notes—The Initial Estimated Value of the Notes Is Less Than the Public Offering Price” above.
VALIDITY OF THE NOTES
In
the opinion of Norton Rose Fulbright Canada LLP, as Canadian counsel to the Bank, the issue and sale of the Notes has been duly authorized
by all necessary corporate action of the Bank in conformity with the indenture, and when the Notes have been duly executed, authenticated
and issued in accordance with the indenture and delivered against payment therefor, the Notes will be validly issued and, to the extent
validity of the Notes is a matter governed by the laws of the Province of Ontario or Québec, or the federal laws of Canada applicable
therein, will be valid obligations of the Bank, subject to the following limitations: (i) the enforceability of the indenture may be
limited by the Canada Deposit Insurance Corporation
P-13 | RBC Capital Markets, LLC |
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| Contingent Coupon Barrier Notes Linked to the Least Performing of Two Underliers |
Act
(Canada), the Winding-up and Restructuring Act (Canada) and bankruptcy, insolvency, reorganization, receivership, moratorium, arrangement
or winding-up laws or other similar laws of general application affecting the enforcement of creditors’ rights generally; (ii)
the enforceability of the indenture is subject to general equitable principles, including the principle that the availability of equitable
remedies, such as specific performance and injunction, may only be granted at the discretion of a court of competent jurisdiction; (iii)
under applicable limitations statutes generally, including that the enforceability of the indenture will be subject to the limitations
contained in the Limitations Act, 2002 (Ontario), and such counsel expresses no opinion as to whether a court may find any provision
of the indenture to be unenforceable as an attempt to vary or exclude a limitation period under such applicable limitations statutes;
(iv) rights to indemnity and contribution under the Notes or the indenture which may be limited by applicable law; and (v) courts in
Canada are precluded from giving a judgment in any currency other than the lawful money of Canada and such judgment may be based on a
rate of exchange in existence on a day other than the day of payment, as prescribed by the Currency Act (Canada). This opinion is given
as of the date hereof and is limited to the laws of the Provinces of Ontario and Québec and the federal laws of Canada applicable
therein. In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery
of the indenture and the genuineness of signatures and to such counsel’s reliance on the Bank and other sources as to certain factual
matters, all as stated in the opinion letter of such counsel dated December 20, 2023, which has been filed as Exhibit 5.3 to the Bank’s
Form 6-K filed with the SEC dated December 20, 2023.
In
the opinion of Davis Polk & Wardwell LLP, as special United States products counsel to the Bank, when the Notes offered by this pricing
supplement have been issued by the Bank pursuant to the indenture, the trustee has made, in accordance with the indenture, the appropriate
notation to the master note evidencing such Notes (the “master note”), and such Notes have been delivered against payment
as contemplated herein, such Notes will be valid and binding obligations of the Bank, enforceable in accordance with their terms, subject
to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable
principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith) and
possible judicial or regulatory actions or applications giving effect to governmental actions or foreign laws affecting creditors’
rights, provided that such counsel expresses no opinion as to (i) the enforceability of any waiver of rights under any usury or
stay law or (ii) the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed
above. This opinion is given as of the date hereof and is limited to the laws of the State of New York. Insofar as the foregoing opinion
involves matters governed by the laws of the Provinces of Ontario and Québec and the federal laws of Canada, you have received,
and we understand that you are relying upon, the opinion of Norton Rose Fulbright Canada LLP, Canadian counsel for the Bank, set forth
above. In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery
of the indenture and the authentication of the master note and the validity, binding nature and enforceability of the indenture with
respect to the trustee, all as stated in the opinion of Davis Polk & Wardwell LLP dated May 16, 2024, which has been filed as an
exhibit to the Bank’s Form 6-K filed with the SEC on May 16, 2024.
P-14 | RBC Capital Markets, LLC |
424B2
EX-FILING FEES
0001000275
333-275898
0001000275
2024-09-09
2024-09-09
iso4217:USD
xbrli:pure
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Ex-Filing Fees
CALCULATION OF FILING FEE TABLES
F-3
ROYAL BANK OF CANADA
Narrative Disclosure
The maximum aggregate offering price of the securities to which the prospectus relates is $2,582,000. The
prospectus is a final prospectus for the related offering(s).
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Royal Bank (PK) (USOTC:RYLBF)
Historical Stock Chart
From Aug 2024 to Sep 2024
Royal Bank (PK) (USOTC:RYLBF)
Historical Stock Chart
From Sep 2023 to Sep 2024