Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing the key terms of Auto-Callable Contingent Coupon Barrier Notes with Memory Coupon linked to the common stock of Eli Lilly and Company, due November 21, 2029.

Key Highlights

  • Issuer and CUSIP: Royal Bank of Canada ("RBC") is the issuer; CUSIP 78018DQ75.
  • Contingent Coupon: At least $26.25 per $1,000 principal amount per quarter, corresponding to a rate of at least 2.625% per quarter or at least 10.50% per annum, to be determined on the Trade Date.
  • Coupon and Barrier Threshold: Both the Coupon Threshold and Barrier Value are set at 70% of the Initial Underlier Value.
  • Automatic Call: Notes may be called quarterly beginning approximately six months following the Trade Date of November 16, 2026, if the Underlier closes at or above the Initial Underlier Value.
  • Initial Estimated Value: Expected to be between $910.03 and $960.03 per $1,000 principal amount, less than the public offering price.
  • Maturity Date: November 21, 2029, with a Valuation Date of November 16, 2029.
  • Principal Risk: According to the filing, if the Final Underlier Value is less than the Barrier Value, investors "will lose a substantial portion or all of your principal amount at maturity."

Royal Bank of Canada's Eli Lilly-Linked Structured Notes: Terms and Risks

According to the filing, Royal Bank of Canada is offering Auto-Callable Contingent Coupon Barrier Notes with a Memory Coupon feature linked to the common stock of Eli Lilly and Company (Bloomberg symbol "LLY UN"). The Trade Date is November 16, 2026, and the Issue Date is November 19, 2026. The notes carry CUSIP 78018DQ75 and were filed under Registration Statement No. 333-275898 pursuant to Rule 433.

The filing describes a contingent coupon structure: investors receive a quarterly coupon of at least $26.25 per $1,000 principal only if the Underlier's closing value on the relevant Coupon Observation Date is greater than or equal to the Coupon Threshold, set at 70% of the Initial Underlier Value. A "memory" feature allows any missed coupon to be paid on a later Coupon Payment Date if the Underlier meets the threshold at that time. The filing notes that investors may not receive any Contingent Coupons during the term of the Notes.

At maturity, if the notes have not been automatically called and the Final Underlier Value is at or above the Barrier Value (also 70% of the Initial Underlier Value), investors receive their $1,000 principal plus any due coupons. If the Final Underlier Value falls below the Barrier Value, the filing states investors lose 1% of principal for each 1% that the Final Underlier Value is less than the Initial Underlier Value. The initial estimated value of the Notes is expected to be between $910.03 and $960.03 per $1,000 principal amount, which the filing states "will be less than the public offering price of the Notes."

What Was Disclosed

Royal Bank of Canada disclosed the preliminary terms of structured notes linked to Eli Lilly common stock, including coupon rates, call and barrier thresholds, maturity details, initial estimated value range, and a summary of selected risk considerations.