Royal Bank of Canada filed a free writing prospectus (FWP) disclosing the terms of Auto-Callable Enhanced Return Dual Directional Barrier Notes linked to Boeing and General Electric common stock, with a maturity date of November 29, 2029.

Key Highlights

  • Issuer and CUSIP: Royal Bank of Canada ("RBC"), CUSIP 78018DRE9, filed under Registration Statement No. 333-275898.
  • Underliers: Common stock of The Boeing Company (Bloomberg symbol "BA UN") and General Electric Company (Bloomberg symbol "GE UN").
  • Auto-Call feature: If, on the Call Observation Date of November 30, 2027, both underliers close at or above their Initial Underlier Values, the notes are automatically called at a minimum of $1,320 per $1,000 principal amount (at least 132% of principal), with settlement on December 3, 2027.
  • Enhanced return at maturity: If not called and the Least Performing Underlier finishes above its Initial Underlier Value, investors receive 150% of that underlier's return (Participation Rate: 150%).
  • Absolute value return cap: If the Least Performing Underlier finishes below its Initial Underlier Value but at or above its Barrier Value (65% of Initial Underlier Value), investors receive a positive return equal to the absolute value of that underlier's return, capped at 35%.
  • Principal at risk: If the Least Performing Underlier finishes below its Barrier Value, investors lose 1% of principal for each 1% the Final Underlier Value falls below the Initial Underlier Value.
  • Initial estimated value: Expected to be between $890.00 and $940.00 per $1,000 principal amount, less than the public offering price, as of the Trade Date.

RBC's Structured Note Terms: Boeing and GE as Dual Underliers

According to the filing, the notes carry a Trade Date of November 24, 2026, an Issue Date of November 30, 2026, a Valuation Date of November 26, 2029, and a Maturity Date of November 29, 2029. The structure centers on the performance of the "Least Performing Underlier," defined as whichever of Boeing or General Electric common stock records the lower Underlier Return. The Underlier Return for each is calculated as the difference between the Final Underlier Value and the Initial Underlier Value, divided by the Initial Underlier Value, with both values based on closing prices on specified dates.

The filing discloses three distinct maturity payment scenarios if the notes are not automatically called. First, if the Least Performing Underlier closes above its Initial Underlier Value on the Valuation Date, investors receive $1,000 plus 150% of that underlier's return per $1,000 principal. Second, if it closes at or below its Initial Underlier Value but at or above 65% of that value (the Barrier Value), investors receive a one-for-one positive return equal to the absolute value of the negative return, though "in no event will this return exceed 35%." Third, if it closes below the Barrier Value, the payment formula produces a loss proportional to the full decline from the Initial Underlier Value.

The filing also states that the initial estimated value "is expected to be between $890.00 and $940.00 per $1,000 principal amount of Notes and will be less than the public offering price." The notes do not pay interest. The filing identifies multiple risk factors, including that payments depend solely on the worst-performing underlier, that there may be no active secondary market, and that all payments are subject to RBC's credit risk. The filing notes that "The U.S. Federal Income Tax Consequences of an Investment in the Notes Are Uncertain."

What Was Disclosed

Royal Bank of Canada disclosed the full terms of structured notes linked to Boeing and General Electric stock, including an auto-call feature, a 150% participation rate at maturity, a 65% barrier, a capped 35% absolute return scenario, and an initial estimated value range of $890.00 to $940.00 per $1,000 principal.