Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing terms for Auto-Callable Enhanced Return Barrier Notes linked to the Russell 2000 Index, with a maturity date of November 30, 2029.

Key Highlights

  • Issuer: Royal Bank of Canada ("RBC"), CUSIP 78018DPQ4, filed under Registration Statement No. 333-275898.
  • Auto-call feature: If the Russell 2000 Index closes at or above its Initial Underlier Value on December 1, 2027, the Notes are automatically called and investors receive at least $1,115 per $1,000 principal amount (at least 111.50%).
  • Enhanced return at maturity: If not called and the Final Underlier Value exceeds the Initial Underlier Value, investors receive 125% of the Underlier Return on top of principal.
  • Barrier protection: The Barrier Value is set at 75% of the Initial Underlier Value; if the Final Underlier Value falls below this level, investors lose 1% of principal for each 1% decline from the Initial Underlier Value.
  • Initial estimated value: The filing states the initial estimated value is expected to be between $912.00 and $962.00 per $1,000 principal amount, which "will be less than the public offering price of the Notes."
  • No interest payments: According to the filing, the Notes do not pay interest.
  • Key dates: Trade Date November 24, 2026; Issue Date November 30, 2026; Valuation Date November 27, 2029; Maturity Date November 30, 2029.

Terms and Structure of Royal Bank of Canada's Russell 2000 Barrier Notes

Royal Bank of Canada disclosed the terms of its Auto-Callable Enhanced Return Barrier Notes linked to the Russell 2000 Index (Bloomberg symbol "RTY") through a free writing prospectus filed pursuant to Rule 433. The Notes carry a scheduled maturity of November 30, 2029, with a single Call Observation Date of December 1, 2027. According to the filing, if the closing value of the Russell 2000 Index on that date equals or exceeds the Initial Underlier Value, the Notes will be automatically called and investors will receive at least $1,115 per $1,000 principal, with the precise call premium to be determined on the Trade Date. No further payments would be made after a call.

If the Notes are not called, the payment at maturity depends on the Final Underlier Value relative to the Initial Underlier Value and the Barrier Value. The filing states that investors receive a 125% participation in any positive Underlier Return if the index finishes above the initial level. If the index finishes flat or lower but remains at or above 75% of the Initial Underlier Value, investors receive their $1,000 principal. If the index falls below the Barrier Value, investors lose principal on a 1-for-1 basis with the percentage decline, and the filing notes investors could "lose a substantial portion or all of your principal amount at maturity."

The filing discloses that the initial estimated value of the Notes is expected to be between $912.00 and $962.00 per $1,000 principal amount as of the Trade Date, below the public offering price. The filing lists multiple risk considerations, including credit risk of Royal Bank of Canada, absence of an active secondary trading market, uncertain U.S. federal income tax treatment, and potential conflicts of interest arising from RBC Capital Markets' role as Calculation Agent.

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus detailing the terms of structured notes linked to the Russell 2000 Index, including an auto-call feature, a 125% participation rate at maturity, a 75% barrier level, and an initial estimated value range of $912.00 to $962.00 per $1,000 principal.