Royal Bank of Canada filed a free writing prospectus on November 4, 2026, disclosing terms for Capped Enhanced Return Buffer Notes linked to the EURO STOXX 50 Index, with a maturity date of November 29, 2028.

Key Highlights

  • Issuer and CUSIP: Royal Bank of Canada (CUSIP 78018DR25) is the issuer of the Notes, listed on NYSE:RY.
  • Participation Rate: The Notes carry a 200% participation rate on any positive Underlier Return, subject to the Maximum Return.
  • Maximum Return: At least 23.50%, to be determined on the Trade Date of November 24, 2026.
  • Buffer Percentage: A 15% buffer applies, with the Buffer Value set at 85% of the Initial Underlier Value.
  • Initial Estimated Value: Expected to be between $907.50 and $957.50 per $1,000 principal amount, which will be less than the public offering price.
  • Key Dates: Trade Date is November 24, 2026; Issue Date is November 30, 2026; Valuation Date is November 24, 2028; Maturity Date is November 29, 2028.
  • No Interest Payments: The Notes do not pay interest over their approximately two-year term.

Payment Structure and Principal Risk for the EURO STOXX 50 Buffer Notes

According to the filing, Royal Bank of Canada is offering structured notes linked to the EURO STOXX 50 Index (Bloomberg symbol "SX5E"), a broad index of 50 large-cap eurozone equities. The Notes are designed to provide enhanced upside participation and conditional principal protection, features that distinguish them from conventional RBC debt securities of comparable maturity.

The filing discloses three distinct payment scenarios at maturity per $1,000 principal amount. If the Final Underlier Value exceeds the Initial Underlier Value, investors receive $1,000 plus the lesser of (a) the Underlier Return multiplied by the 200% Participation Rate or (b) the Maximum Return of at least 23.50%. If the Final Underlier Value is flat or down but remains at or above the Buffer Value of 85% of the Initial Underlier Value, investors receive $1,000 in full. If the Final Underlier Value falls below the Buffer Value, the filing states investors "will lose 1% of the principal amount of their Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value in excess of the Buffer Percentage," meaning losses beyond the 15% buffer are borne directly by the noteholder.

The filing identifies several risk considerations specific to this offering. These include the absence of interest payments, the limitation on upside return, credit risk tied to Royal Bank of Canada as issuer, potential conflicts of interest arising from RBC Capital Markets LLC's role as Calculation Agent, and uncertainty regarding U.S. federal income tax treatment. The filing also notes that the Notes are subject to risks relating to non-U.S. securities markets and do not provide direct exposure to fluctuations in exchange rates between the U.S. dollar and the euro. The filing was made pursuant to Rule 433, referencing Registration Statement No. 333-275898.

What Was Disclosed

Royal Bank of Canada disclosed the full term sheet for two-year structured notes linked to the EURO STOXX 50 Index, including payment formulas, a 15% downside buffer, a 200% participation rate capped at a minimum 23.50% maximum return, and an initial estimated value range of $907.50 to $957.50 per $1,000 principal.