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CUSIP: 78016FRL0
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Trade Date: August 26, 2022
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Settlement Date: August 31, 2022
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Valuation Date: August 26, 2027
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Maturity Date: August 31, 2027
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Term: 5 years
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Reference Asset: the EURO STOXX 50® Index (SX5E)
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Buffer Level: 60% of the Initial Level
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Leverage Factor: [130% - 140%], to be determined on the Trade Date
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Percentage Change of the Reference Asset:
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Receive a return based on [130% - 140%] of the Percentage Change if the level of the Reference Asset increases from the Initial Level to the Final Level.
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Return of principal if the Reference Asset does not decrease by more than 40%.
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Subject to 1% loss of the principal amount for each 1% that the Reference Asset decreases below the Buffer Level if the Final Level is less than the Buffer Level.
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The notes are subject to Royal Bank of Canada’s credit risk.
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The notes are not principal protected.
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Your notes are likely to have limited liquidity.
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Please see the following page for important risk factor information.
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Each investor will agree to treat the notes as a pre-paid cash-settled derivative contract for U.S. federal income tax purposes, as described in more detail in the product prospectus supplement.
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DETERMINING PAYMENT AT MATURITY
You will lose 1% of the principal amount for each 1% decline in the level of the Reference Asset beyond the Buffer Level. The payment at maturity per $1,000
in principal amount of the notes will be calculated as follows:
$1,000 + [$1,000 x (Percentage Change + 40%)]
In this case, you may lose up to 60% of the principal amount at maturity.
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You May Lose a Substantial Portion of Your Principal Amount, Depending Upon the Performance of the Reference Asset.
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The Notes Do Not Pay Interest and Your Return May Be Lower than the Return on a Conventional Debt Security of Comparable Maturity.
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Payments on the Notes Are Subject to Our Credit Risk, and Changes in Our Credit Ratings Are Expected to Affect the Market Value of the Notes.
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There May Not Be an Active Trading Market for the Notes—Sales in the Secondary Market May Result in Significant Losses.
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An Investment in the Notes Is Subject to Risks Relating to Non-U.S. Securities Markets.
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The Payments on the Notes Will Not Be Adjusted for Changes in Exchange Rates.
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You Will Not Have Any Rights to the Securities Included in the Reference Asset.
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The Initial Estimated Value of the Notes Will Be Less than the Price to the Public.
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The Initial Estimated Value of the Notes that We Will Provide in the Final Pricing Supplement Will Be an Estimate Only, Calculated as of the Time the Terms of the Notes Are Set.
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Our Business Activities May Create Conflicts of Interest.
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The Payment at Maturity and the Valuation Date Are Subject to Postponement if a Market Disruption Event Occurs.
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