RBC offers principal protected note linked to commodities in Canada

RBC in Canada has launched a 100% principal protected note linked to a basket of commodities that includes Brent crude oil, copper, nickel and zinc. The five-year RBC Principal Protected Commodity Booster Notes offers 50% return at maturity if the performance of the basket goes up between 0% and 50%.

But if the performance of the basket is greater than 50%, the investor will receive the total return of the basket at maturity. In addition, there is the potential for an interim coupon payment of 20% at year three. Irrespective of whether the 20% interim coupon is paid at year three or not, investors can still receive the 50% booster payout at maturity.

The notes are denominated in Canadian dollars and there is no direct foreign currency exposure.

The offer of the note ends on July 20.