Auto-Callable Enhanced Return Dual Directional Barrier Notes
Linked to a Basket of Three Equity Securities

Due March 2, 2027

 

 

PRODUCT CHARACTERISTICS
·Call Feature — If, on the Call Observation Date, the closing value of the Basket is greater than or equal to the Call Value, the Notes will be automatically called for a return of 20%. No further payments will be made on the Notes.

·Enhanced Return Potential — If the Notes are not automatically called and the Final Basket Value is greater than the Initial Basket Value, at maturity, investors will receive a return equal to 150% of the Basket Return.

·Absolute Value Return — If the Notes are not automatically called and the Final Basket Value is less than or equal to the Initial Basket Value, but is greater than or equal to the Barrier Value, at maturity, investors will receive a one-for-one positive return equal to the absolute value of the Basket Return.

·Principal at Risk — If the Notes are not automatically called and the Final Basket Value is less than the Barrier Value, at maturity, investors will lose 1% of the principal amount of their Notes for each 1% that the Final Basket Value is less than the Initial Basket Value.

KEY TERMS
Issuer: Royal Bank of Canada (“RBC”)
CUSIP: 78017KQZ8
Basket Underliers: The American depositary shares of Arm Holdings plc (Bloomberg symbol “ARM UW”), the common stock of Marvell Technology, Inc. (Bloomberg symbol “MRVL UW”) and the common stock of NVIDIA Corporation (Bloomberg symbol “NVDA UW”)
Basket Weighting: With respect to each Basket Underlier: 1/3
Trade Date: February 25, 2025
Issue Date: February 28, 2025
Valuation Date: February 25, 2027
Maturity Date: March 2, 2027
Call Feature: If, on the Call Observation Date, the closing value of the Basket is greater than or equal to the Call Value, the Notes will be automatically called. Under these circumstances, investors will receive on the Call Settlement Date per $1,000 principal amount of Notes an amount equal to $1,200 (120% of the principal amount). No further payments will be made on the Notes.
Call Value: 100, which is 100% of the Initial Basket Value
Call Observation Date: March 10, 2026
Call Settlement Date: March 13, 2026
Payment at Maturity:

If the Notes are not automatically called, investors will receive on the Maturity Date per $1,000 principal amount of Notes:

·   If the Final Basket Value is greater than the Initial Basket Value, an amount equal to:

$1,000 + ($1,000 × Basket Return × Participation Rate) 

·   If the Final Basket Value is less than or equal to the Initial Basket Value, but is greater than or equal to the Barrier Value, an amount equal to:

$1,000 + (-1 × $1,000 × Basket Return) 

In this case, you will receive a positive return on the Notes equal to the absolute value of the Basket Return, even though the Basket Return is negative. In no event will this return exceed 30%.

·   If the Final Basket Value is less than the Barrier Value, an amount equal to:

$1,000 + ($1,000 × Basket Return) 

If the Notes are not automatically called and the Final Basket Value is less than the Barrier Value, you will lose a substantial portion or all of your principal amount at maturity.

 

KEY TERMS (continued)
Participation Rate: 150% (applicable only at maturity if the Notes are not automatically called)
Basket Return: Final Basket Value – Initial Basket Value
Initial Basket Value
Initial Basket Value: Set equal to 100 on the Trade Date
Final Basket Value: The closing value of the Basket on the Valuation Date
Closing Value of the Basket:

On any relevant day, the closing value of the Basket will be calculated as follows:

100 × [1 + (the sum of, for each Basket Underlier, its Basket Underlier Return on that day times its Basket Weighting)]

Barrier Value: 70, which is 70% of the Initial Basket Value
Basket Underlier Return: With respect to each Basket Underlier on any relevant day: (a) the closing value of that Basket Underlier on that day minus the Initial Basket Underlier Value divided by (b) the Initial Basket Underlier Value
Initial Basket Underlier Value: With respect to each Basket Underlier, the closing value of that Basket Underlier on the Trade Date
PAYOFF DIAGRAM (IF THE NOTES ARE NOT AUTOMATICALLY CALLED)

 

This document provides a summary of the terms of the Notes. Investors should carefully review the accompanying preliminary pricing supplement, product supplement, prospectus supplement and prospectus, as well as “Selected Risk Considerations” below, before making a decision to invest in the Notes:

https://www.sec.gov/Archives/edgar/data/1000275/000095010325001614/dp224594_424b2-us2231mul.htm

The initial estimated value of the Notes determined by us as of the Trade Date, which we refer to as the initial estimated value, is expected to be between $905.00 and $955.00 per $1,000 principal amount of Notes and will be less than the public offering price of the Notes. We describe the determination of the initial estimated value in more detail in the accompanying preliminary pricing supplement.

 

 

 

 

 

   

 

 

 

 

 

Selected Risk Considerations

 

An investment in the Notes involves significant risks. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes. Some of the risks that apply to an investment in the Notes are summarized below, but we urge you to read also the “Selected Risk Considerations” section of the accompanying preliminary pricing supplement and the “Risk Factors” sections of the accompanying prospectus, prospectus supplement and product supplement. You should not purchase the Notes unless you understand and can bear the risks of investing in the Notes.

 

·You May Lose a Portion or All of the Principal Amount at Maturity.

·Your Potential for a Positive Return from Depreciation of the Basket Is Limited.

·The Notes Do Not Pay Interest, and Your Return on the Notes May Be Lower Than the Return on a Conventional Debt Security of Comparable Maturity.

·The Notes Are Subject to an Automatic Call.

·If the Notes Are Automatically Called, Your Potential Payment Is Limited.

·Payments on the Notes Are Subject to Our Credit Risk, and Market Perceptions about Our Creditworthiness May Adversely Affect the Market Value of the Notes.

·Changes in the Value of One Basket Underlier May Be Offset by Changes in the Values of the Other Basket Underliers.

·Any Payment on the Notes Will Be Determined Based on the Closing Values of the Basket Underliers on the Dates Specified.

·The U.S. Federal Income Tax Consequences of an Investment in the Notes Are Uncertain.

·There May Not Be an Active Trading Market for the Notes; Sales in the Secondary Market May Result in Significant Losses.

·The Initial Estimated Value of the Notes Will Be Less Than the Public Offering Price.

·The Initial Estimated Value of the Notes Is Only an Estimate, Calculated as of the Trade Date.

·Our and Our Affiliates’ Business and Trading Activities May Create Conflicts of Interest.

·RBCCM’s Role as Calculation Agent May Create Conflicts of Interest.

·You Will Not Have Any Rights to Any Basket Underlier.

·The ARM Underlier Has a Limited Trading History.

·There Are Important Differences between the ARM Underlier and the Ordinary Shares of Arm Holdings plc.

·The Notes Are Subject to Risks Relating to Non-U.S. Securities with Respect to the ARM Underlier.

·The Value of the ARM Underlier Is Subject to Currency Exchange Risk.

·We May Accelerate the Notes If a Change-in-Law Event Occurs.

·Any Payment on the Notes May Be Postponed and Adversely Affected by the Occurrence of a Market Disruption Event.

·Anti-dilution Protection Is Limited, and the Calculation Agent Has Discretion to Make Anti-dilution Adjustments.

·Reorganization or Other Events Could Adversely Affect the Value of the Notes or Result in the Notes Being Accelerated.

 

Royal Bank of Canada has filed a registration statement (including a product supplement, prospectus supplement and prospectus) with the SEC for the offering to which this document relates. Before you invest, you should read those documents and the other documents that we have filed with the SEC for more complete information about us and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, we, any agent or any dealer participating in this offering will arrange to send you those documents if you so request by calling toll-free at 1-877-688-2301.

 

As used in this document, “Royal Bank of Canada,” “we,” “our” and “us” mean only Royal Bank of Canada. Capitalized terms used in this document without definition are as defined in the accompanying preliminary pricing supplement.

 

Registration Statement No. 333-275898; filed pursuant to Rule 433

 

 

 

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