Royal Bank of Canada filed a 424B2 pricing supplement on August 4, 2026, disclosing the terms of $3,308,000 in Market Linked Securities linked to a five-index international basket, with a stated maturity date of August 5, 2031.

Key Highlights

  • Total offering size: $3,308,000 in principal-at-risk securities, priced at $1,000 per security.
  • Upside participation: If the basket increases, investors receive the face amount plus 170% of the basket's percentage gain.
  • Contingent protection: If the basket declines but by no more than 25%, investors receive the full $1,000 face amount.
  • Downside threshold: If the basket falls more than 25% below the starting level, investors have full downside exposure and may lose more than 25%, or possibly all, of the face amount.
  • Initial estimated value: $946.80 per security, below the $1,000 original offering price.
  • Agent discount: $38.70 per security, with total proceeds to Royal Bank of Canada of $3,179,980.40.
  • No interest or exchange listing: The securities pay no periodic interest and are not listed on any exchange; they are designed to be held to maturity.

Structure and Basket Composition of the 2031 Linked Securities

According to the pricing supplement dated July 31, 2026, the securities are senior unsecured obligations of Royal Bank of Canada (NYSE: RY) issued under its Senior Global Medium-Term Notes, Series J program. The basket underlying the securities consists of five international equity indexes with unequal weightings: the EURO STOXX 50 Index (38.00%), the TOPIX Index (26.00%), the FTSE 100 Index (17.00%), the Swiss Market Index (11.00%), and the S&P/ASX 200 Index (8.00%). The filing sets the starting level at 100 on the pricing date of July 31, 2026, with the calculation day on July 31, 2031.

The filing states that the maturity payment amount depends on the basket's performance relative to its starting level. The upside participation rate is 170%, applying to any positive basket return. The threshold level is set at 75.00, equal to 75% of the starting level. If the ending level falls below that threshold, the filing states investors "will have full downside exposure to the decrease in the value of the Basket from the starting level." Wells Fargo Securities, LLC served as agent and acted as principal in the distribution. The filing notes RBCCM may pay a fee of up to $2.00 per security to selected dealers for marketing services.

The filing discloses that the initial estimated value of $946.80 per security "is less than the original offering price of the securities" and that "the market value of the securities at any time will reflect many factors, cannot be predicted with accuracy and may be less than this amount." All payments are subject to the credit risk of Royal Bank of Canada as issuer, and the securities will not constitute insured deposits under any Canadian or U.S. governmental insurance program.

What Was Disclosed

Royal Bank of Canada disclosed the pricing terms of $3,308,000 in market-linked, principal-at-risk securities tied to a five-index international basket, maturing August 5, 2031, with a 170% upside participation rate and a 25% contingent downside buffer.