Royal Bank of Canada filed a free writing prospectus on October 28, 2026, under Registration Statement No. 333-275898, disclosing preliminary terms for Autocallable Strategic Accelerated Redemption Securities (STARS) linked to an international equity index basket.

Key Highlights

  • Principal amount: $10.00 per unit, with a term of approximately 3 years if not called on the first or second Observation Dates.
  • Basket composition: Six international indices, with the EURO STOXX 50 Index weighted at 40.00%, the FTSE 100 and Nikkei Stock Average each at 20.00%, the Swiss Market Index and S&P/ASX 200 each at 7.50%, and the FTSE China 50 Index at 5.00%.
  • Call amounts (preliminary ranges): [$10.95 to $11.05] per unit if called on the first Observation Date, [$11.90 to $12.10] on the second, and [$12.85 to $13.15] on the final Observation Date, each to be set on the pricing date.
  • Automatic call trigger: Notes are automatically called if the Observation Level of the Market Measure on any Observation Date is equal to or greater than the Starting Value.
  • Downside risk: If not called, investors face 1-to-1 downside exposure to decreases in the Market Measure, with 100% of principal at risk.
  • No exchange listing: The filing states the notes will not be listed on any exchange, and a trading market is not expected to develop.

Preliminary Terms for Royal Bank of Canada STARS Notes Linked to International Equity Index Basket

Royal Bank of Canada ("RBC") disclosed preliminary terms for a structured note offering through a free writing prospectus filed pursuant to Rule 433. The securities are described as Autocallable Strategic Accelerated Redemption Securities (STARS), issued at $10.00 per unit and linked to a basket of six international equity indices. According to the filing, the basket components are all price return indices, and each carries a fixed initial weight as described above.

The filing specifies three Observation Dates, each approximately one, two, and three years after the pricing date. An automatic call occurs if the Observation Level of the Market Measure equals or exceeds the Starting Value on any of those dates, with call amounts varying by Observation Date. The Threshold Value is set at 100% of the Starting Value. Final terms, including the exact call amounts within the stated preliminary ranges, will be determined on the pricing date, according to the filing.

The filing identifies several risk factors investors should consider before investing. These include that payments on the notes are subject to RBC's credit risk, that the public offering price will exceed the initial estimated value of the notes, that the initial estimated value does not represent a minimum or maximum secondary market price, and that the U.S. federal income tax consequences of an investment in the notes are described as uncertain. The filing also notes that conflicts of interest may arise involving BofAS, which serves as the calculation agent. RBC directed prospective investors to the Preliminary Offering Documents for complete product disclosure.

What Was Disclosed

RBC filed a free writing prospectus outlining preliminary terms for STARS notes linked to a six-index international basket, with a $10.00 per unit principal, approximate 3-year term, autocall feature, and full principal at risk if not called.