Royal Bank of Canada filed a free writing prospectus on November 4, 2026, disclosing terms for Auto-Callable Enhanced Return Barrier Notes linked to a basket of five U.S. financial-sector equity securities, with a maturity date of November 29, 2029.

Key Highlights

  • Issuer and CUSIP: Royal Bank of Canada (CUSIP 78018DRB5) is the issuer of the Notes, listed on NYSE:RY.
  • Basket composition: The five equally weighted underliers are Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), Morgan Stanley (MS), and Wells Fargo (WFC), each carrying a 1/5 basket weighting.
  • Auto-call feature: If the basket closing value on November 30, 2027 is at or above the Initial Basket Value of 100, the Notes will be called and investors will receive at least $1,132.50 per $1,000 principal amount, representing at least 113.25% of principal.
  • Enhanced return at maturity: If not called and the Final Basket Value exceeds the Initial Basket Value, investors receive a return equal to 150% of the Basket Return, per the filing.
  • Barrier level: The Barrier Value is set at 70, equal to 70% of the Initial Basket Value; if the Final Basket Value falls below this level, investors lose 1% of principal for each 1% decline below the Initial Basket Value.
  • Initial estimated value: According to the filing, the initial estimated value is expected to be between $902.50 and $952.50 per $1,000 principal amount, which "will be less than the public offering price of the Notes."
  • Key dates: The Trade Date is November 24, 2026, the Issue Date is November 30, 2026, the Valuation Date is November 26, 2029, and the Maturity Date is November 29, 2029.

Structure and Payment Terms of the RBC Five-Bank Basket Notes

According to the filing, the Notes are structured with three possible outcomes at maturity, all contingent on whether an automatic call occurs first. On the Call Observation Date of November 30, 2027, the closing value of the basket is compared to the Initial Basket Value of 100. If the basket is at or above that level, the Notes are called and no further payments follow. The call settlement would occur on December 3, 2027, with investors receiving at least $1,132.50 per $1,000 principal amount, the exact return to be determined on the Trade Date.

If the Notes are not called and the basket finishes above the Initial Basket Value on the Valuation Date of November 26, 2029, the filing states that investors receive $1,000 plus the product of $1,000, the Basket Return, and the 150% Participation Rate. If the basket finishes at or below the Initial Basket Value but at or above the Barrier Value of 70, investors receive their $1,000 principal. If the basket finishes below the Barrier Value, the filing states investors "will lose a substantial portion or all of your principal amount at maturity," with the loss proportional to the basket decline from its initial level.

The basket is composed entirely of large U.S. financial-sector companies, with each of the five stocks contributing equally to the basket's closing value calculation. The filing notes that "changes in the value of one Basket Underlier may be offset by changes in the values of the other Basket Underliers," a characteristic inherent to equally weighted multi-stock baskets. The Notes do not pay interest, and Royal Bank of Canada's credit risk is identified as a factor affecting any payment under the Notes.

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus describing Auto-Callable Enhanced Return Barrier Notes due November 29, 2029, linked to five equally weighted U.S. bank stocks. The filing specifies the call threshold, barrier level, participation rate, estimated initial value range, and key risk considerations associated with the Notes.