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 EURO STOXX 50 Index, maturing December 5, 2028.

Key Highlights

  • Issuer: Royal Bank of Canada ("RBC"), CUSIP 78018DQY6, linked to the EURO STOXX 50 Index (Bloomberg symbol "SX5E").
  • Key dates: Trade Date November 30, 2026; Issue Date December 3, 2026; Valuation Date November 30, 2028; Maturity Date December 5, 2028.
  • Maximum Upside Return: At least 27% (exact figure to be determined on the Trade Date), with a 100% Participation Rate subject to that cap.
  • Buffer Percentage: 20%, meaning the Buffer Value is set at 80% of the Initial Underlier Value; the absolute value return on the downside is capped at 20%.
  • Principal at risk: If the Final Underlier Value falls below the Buffer Value, investors lose 1% of principal for each 1% decline beyond the 20% buffer.
  • Initial estimated value: Expected to be between $920.00 and $970.00 per $1,000 principal amount, which the filing states "will be less than the public offering price of the Notes."
  • No interest payments: The Notes do not pay periodic interest.

Structure and Payoff Terms for RBC's EURO STOXX 50 Linked Notes

According to the filing, the Notes offer three distinct payoff scenarios at maturity per $1,000 principal amount. If the Final Underlier Value is greater than the Initial Underlier Value, investors receive $1,000 plus the lesser of (a) the Underlier Return multiplied by the 100% Participation Rate or (b) the Maximum Upside Return of at least 27%. If the index finishes flat or declines but remains at or above 80% of its initial level (the Buffer Value), investors receive $1,000 plus a positive return equal to the absolute value of the Underlier Return, though the filing notes this return cannot exceed 20%. If the index falls below the Buffer Value, investors receive $1,000 plus the sum of the Underlier Return and the 20% Buffer Percentage, resulting in a loss of principal.

The filing discloses that the initial estimated value of the Notes is expected to be between $920.00 and $970.00 per $1,000 principal amount as of the Trade Date, and will be less than the public offering price. The filing states that a more detailed explanation of this estimate is contained in the accompanying preliminary pricing supplement. The Notes are registered under Registration Statement No. 333-275898 and filed pursuant to Rule 433.

The filing identifies several risk considerations, including that payments are subject to Royal Bank of Canada's credit risk, there may not be an active secondary trading market, U.S. federal income tax consequences are described as uncertain, and Royal Bank of Canada may accelerate the Notes if a change-in-law event occurs. The filing also notes that the Notes do not provide direct exposure to fluctuations in exchange rates between the U.S. dollar and the Euro, and that RBC Capital Markets' role as Calculation Agent may create conflicts of interest.

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus outlining the terms of structured notes linked to the EURO STOXX 50 Index, with a maturity of December 5, 2028, a 20% buffer, a maximum upside of at least 27%, and an initial estimated value of $920.00 to $970.00 per $1,000 face amount.