Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing terms for Auto-Callable Enhanced Return Barrier Notes linked to a basket of five equity securities, with a maturity date of November 29, 2029.

Key Highlights

  • Issuer and CUSIP: Royal Bank of Canada ("RBC"), CUSIP 78018DQS9, under Registration Statement No. 333-275898.
  • Basket composition: Five equally weighted underliers (1/5 each) - AMD, Broadcom (AVGO), NVIDIA (NVDA), QUALCOMM (QCOM), and Taiwan Semiconductor Manufacturing Company Limited ADSs (TSM).
  • Automatic call: If the basket closes at or above the Initial Basket Value on November 30, 2027, investors receive at least $1,155 per $1,000 principal amount on December 3, 2027.
  • Enhanced participation: If not called and the Final Basket Value exceeds the Initial Basket Value at maturity, investors receive 150% of the Basket Return on the $1,000 principal.
  • Barrier protection: The Barrier Value is set at 70, which is 70% of the Initial Basket Value; principal is returned in full if the Final Basket Value falls between the barrier and the initial value.
  • Principal at risk: If the Final Basket Value is below the Barrier Value at maturity, investors lose 1% of principal for each 1% the Final Basket Value is below the Initial Basket Value.
  • Initial estimated value: Expected to be between $890.00 and $940.00 per $1,000 principal amount, which the filing states "will be less than the public offering price of the Notes."

Structure and Payment Terms of the RBC Barrier Notes

According to the filing, the Notes have a Trade Date of November 24, 2026, an Issue Date of November 30, 2026, a Valuation Date of November 26, 2029, and a Maturity Date of November 29, 2029. The Initial Basket Value is set equal to 100 on the Trade Date, and the closing value of the basket on any relevant day is calculated as 100 multiplied by one plus the sum of each underlier's return times its weighting of 1/5.

The filing describes a single Call Observation Date of November 30, 2027. If the basket's closing value on that date is greater than or equal to the Initial Basket Value of 100, the Notes are automatically called and investors receive at least $1,155 per $1,000 principal amount on the Call Settlement Date of December 3, 2027, with no further payments made. The minimum call return of at least 15.50% is to be finalized on the Trade Date, the filing states.

If the Notes are not called and the Final Basket Value at maturity is below the Barrier Value of 70, the filing discloses that "you will lose a substantial portion or all of your principal amount at maturity." The Notes pay no interest, and the filing identifies numerous risk factors, including credit risk of Royal Bank of Canada, absence of an active secondary trading market, currency exchange risk specific to the TSM underlier, and the possibility that gains in some basket underliers may be offset by losses in others. The filing notes that the U.S. federal income tax consequences of investing in the Notes "are uncertain."

What Was Disclosed

Royal Bank of Canada disclosed the preliminary terms of auto-callable structured notes linked to an equal-weighted basket of five semiconductor and technology equities, including call, participation, and barrier mechanics, along with an initial estimated value range of $890.00 to $940.00 per $1,000 principal.