Royal Bank of Canada filed a free writing prospectus (FWP) disclosing the preliminary terms of Auto-Callable Enhanced Return Barrier Notes linked to a basket of five equity securities, due December 5, 2029, with a trade date of November 30, 2026.

Key Highlights

  • Issuer and CUSIP: Royal Bank of Canada ("RBC"), CUSIP 78018DQV2, filed under Registration Statement No. 333-275898.
  • Five-stock basket: Equal 1/5 weights in Constellation Energy Corporation (CEG), GE Vernova Inc. (GEV), NRG Energy Inc. (NRG), Quanta Services Inc. (PWR), and Vistra Corp. (VST).
  • Auto-call feature: If the basket value on December 6, 2027 equals or exceeds the Initial Basket Value of 100, investors receive at least $1,210 per $1,000 principal (at least 21% return); no further payments are made.
  • Upside at maturity: If not called and the Final Basket Value exceeds the Initial Basket Value, investors receive 150% of the Basket Return (Participation Rate of 150%).
  • Barrier protection: The Barrier Value is 70, equal to 70% of the Initial Basket Value; principal is returned in full only if the Final Basket Value is at or above that level.
  • Principal loss risk: If the Final Basket Value falls below 70, investors lose 1% of principal for each 1% the Final Basket Value is below the Initial Basket Value, according to the filing.
  • Initial estimated value: Expected to be between $900.00 and $950.00 per $1,000 principal amount, less than the public offering price, as disclosed in the filing.

RBC's Preliminary Terms for Energy-Sector Basket Notes

According to the filing, Royal Bank of Canada is offering structured notes linked to an equally weighted basket of five common stocks in the energy and utilities sector. The Trade Date is set for November 30, 2026, with an Issue Date of December 3, 2026. The notes carry a Maturity Date of December 5, 2029, and the Final Basket Value is determined on the Valuation Date of November 30, 2029. The filing identifies the basket underliers by their Bloomberg symbols: CEG UW, GEV UN, NRG UN, PWR UN, and VST UN, each assigned a Basket Weighting of 1/5.

The filing describes three maturity payment scenarios if the notes are not automatically called. First, if the Final Basket Value exceeds the Initial Basket Value of 100, the investor receives $1,000 plus $1,000 multiplied by the Basket Return and the 150% Participation Rate. Second, if the Final Basket Value is at or below 100 but at or above the Barrier Value of 70, the investor receives $1,000. Third, if the Final Basket Value falls below 70, the investor receives $1,000 plus $1,000 multiplied by the Basket Return, which the filing states could mean losing "a substantial portion or all of your principal amount at maturity."

The filing notes that the notes pay no interest, that payments are subject to RBC's credit risk, and that the initial estimated value will be less than the public offering price. The filing also highlights that GE Vernova Inc. "has a limited trading history" as a specific risk factor. The filing directs investors to the accompanying preliminary pricing supplement on the SEC's EDGAR system for complete terms and risk disclosures, and states that all capitalized terms not defined in the FWP are as defined in that supplement.

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus setting out the preliminary key terms of Auto-Callable Enhanced Return Barrier Notes (CUSIP 78018DQV2) linked to five equally weighted energy-sector equities, with a potential auto-call in December 2027 and a maturity in December 2029.