Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing terms for Capped Return Dual Directional Buffer Notes linked to the S&P 500 Index, with a maturity date of November 29, 2028.

Key Highlights

  • Issuer: Royal Bank of Canada ("RBC"), CUSIP 78018DR33, filed under Registration Statement No. 333-275898.
  • Maturity and dates: Trade Date November 24, 2026; Issue Date November 30, 2026; Valuation Date November 24, 2028; Maturity Date November 29, 2028.
  • Maximum Upside Return: At least 20%, subject to a 100% Participation Rate, to be determined on the Trade Date.
  • Buffer Percentage: 10%, with the Buffer Value set at 90% of the Initial Underlier Value; the absolute value return in the buffer zone is capped at 10%.
  • Principal at risk: If the Final Underlier Value falls below the Buffer Value, investors lose 1% of principal for each 1% decline beyond the 10% buffer.
  • Initial estimated value: Expected to be between $907.90 and $957.90 per $1,000 principal amount, less than the public offering price.
  • No interest payments: The Notes do not pay interest over their term.

Terms and Payout Structure of RBC's Dual Directional Buffer Notes

According to the filing, the Notes are linked to the S&P 500 Index (Bloomberg symbol "SPX") and offer three distinct payout scenarios at maturity per $1,000 principal amount. If the Final Underlier Value is greater than the Initial Underlier Value, the filing states investors receive $1,000 plus the lesser of the Underlier Return multiplied by the 100% Participation Rate or the Maximum Upside Return of at least 20%. The Maximum Upside Return will be set on the Trade Date of November 24, 2026.

The filing describes an "Absolute Value Return" feature: if the Final Underlier Value is at or below the Initial Underlier Value but at or above 90% of it (the Buffer Value), investors receive a positive return equal to the absolute value of the negative Underlier Return, though this return will not exceed 10%. If the Final Underlier Value falls below the Buffer Value, the filing states investors receive $1,000 plus the product of $1,000 and the sum of the Underlier Return and the 10% Buffer Percentage, meaning investors "will lose some or a substantial portion" of their principal, as characterized in the filing.

The filing discloses that the initial estimated value of the Notes is expected to be between $907.90 and $957.90 per $1,000 principal amount as of the Trade Date, which will be less than the public offering price. The filing further notes that payments are subject to RBC's credit risk, there may not be an active secondary trading market, the U.S. federal income tax consequences are uncertain, and RBC Capital Markets' role as Calculation Agent may create conflicts of interest, among other risk considerations listed in the filing.

What Was Disclosed

Royal Bank of Canada disclosed the key terms, payout mechanics, risk factors, and estimated value range for Capped Return Dual Directional Buffer Notes linked to the S&P 500 Index, due November 29, 2028, via a free writing prospectus filed pursuant to Rule 433.