RBC announces commodity bonus booster notes
TORONTO, June 20, 2007 — In response to investor
demand for innovative commodity structures, RBC today issued
the next series of RBC Principal Protected Commodity Booster
Notes.
Offering 100 per cent principal protection, the RBC Principal
Protected Commodity Booster Notes, Series 3 give investors
access to a basket of commodities that includes Brent crude
oil, copper, nickel and zinc. For any appreciation in the
commodity basket above zero per cent and less than 50 per
cent, the Notes will return 50 per cent at maturity - the
"Booster Zone". For any appreciation greater than
50 per cent, the investor will receive the full appreciation
of the commodity basket at maturity. Should the change in
the commodity basket be less than zero per cent, investors
will receive their original principal amount at maturity.
In addition, there is the potential for an interim coupon
payment of 20 per cent on the Note at year 3. If, on the third
annual anniversary date of the Note, the commodity basket
has a positive appreciation, the investor will receive a 20
per cent coupon at year 3. Whether the 20 per cent interim
coupon is paid at year 3 or not, the Note remains in effect
for the entire 5-year term and is eligible for the 50 per
cent Booster payout at maturity. The Notes are issued in Canadian
dollars and there is no direct foreign currency exposure.
The RBC Principal Protected Commodity Booster Notes can be
purchased through FundSERV (code RBC323) and are available
to self-directed investors, as well as through investment
advisors and financial planners up until July 20, 2007. With
a maturity date of July 25, 2012, these Notes are 100 per
cent RRSP eligible. For complete details and to view the information
statement, please visit www.rbccm.com/notes.
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Media contact:
Jackie Braden (416) 974-2124
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