Royal Bank of Canada filed a free writing prospectus (FWP) disclosing the terms of Auto-Callable Contingent Coupon Barrier Notes linked to the VanEck Semiconductor ETF, with a stated maturity date of November 21, 2029, filed pursuant to Rule 433 under Registration Statement No. 333-275898.

Key Highlights

  • Issuer and CUSIP: Royal Bank of Canada ("RBC") is the issuer; the notes carry CUSIP 78018DQA8.
  • Contingent Coupon Rate: If payable, 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.
  • Barrier and Coupon Threshold: Both the Barrier Value and the Coupon Threshold are set at 70% of the Initial Underlier Value.
  • Trade Date and Maturity: The Trade Date is November 16, 2026; the Maturity Date is November 21, 2029.
  • Initial Estimated Value: The initial estimated value is expected to be between $907.44 and $957.44 per $1,000 principal amount, and will be less than the public offering price.
  • Principal Risk: According to the filing, "If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, you will lose a substantial portion or all of your principal amount at maturity."
  • Underlier: The notes are linked to the VanEck Semiconductor ETF (Bloomberg symbol "SMH UQ").

Structure and Terms of RBC's Auto-Callable Semiconductor ETF-Linked Notes

According to the filing, Royal Bank of Canada is offering Auto-Callable Contingent Coupon Barrier Notes with a Memory Coupon feature linked to the VanEck Semiconductor ETF. The notes are structured with quarterly Coupon Observation Dates and quarterly Call Observation Dates beginning approximately six months following the Trade Date of November 16, 2026. The Issue Date is listed as November 19, 2026, and the Valuation Date is November 16, 2029.

The filing describes a memory coupon feature under which a Contingent Coupon not paid on a given Coupon Payment Date may be paid on a later Coupon Payment Date, but only if the closing value of the Underlier is greater than or equal to the Coupon Threshold on a later Coupon Observation Date. The filing also states that investors "may not receive any Contingent Coupons during the term of the Notes." If the closing value of the Underlier on any Call Observation Date is greater than or equal to the Initial Underlier Value, the notes will be automatically called at 100% of their principal amount plus any Contingent Coupon and unpaid Contingent Coupons otherwise due.

At maturity, if the notes have not been called and the Final Underlier Value is greater than or equal to the Barrier Value (70% of the Initial Underlier Value), investors receive $1,000 per $1,000 principal amount plus any coupons due. If the Final Underlier Value is 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 filing notes that the initial estimated value will be less than the public offering price, and discloses that Royal Bank of Canada's affiliate RBCCM serves as Calculation Agent, which "may create conflicts of interest."

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus detailing the key terms, coupon structure, call feature, barrier provisions, risk considerations, and estimated value range for structured notes linked to the VanEck Semiconductor ETF, maturing November 21, 2029.