Bond Royal Bank of Canada 0% ( US78012KF281 ) in USD

Issuer Royal Bank of Canada
Market price 100 %  ⇌ 
Country  Canada
ISIN code  US78012KF281 ( in USD )
Interest rate 0%
Maturity 03/10/2022 - Bond has expired



Prospectus brochure of the bond Royal Bank of Canada US78012KF281 in USD 0%, expired


Minimal amount 1 000 USD
Total amount 3 359 000 USD
Cusip 78012KF28
Standard & Poor's ( S&P ) rating N/A
Moody's rating NR
Detailed description The Royal Bank of Canada (RBC) is a Canadian multinational financial services company offering personal and commercial banking, wealth management, insurance, and investment banking services globally.

The Bond issued by Royal Bank of Canada ( Canada ) , in USD, with the ISIN code US78012KF281, pays a coupon of 0% per year.
The coupons are paid 2 times per year and the Bond maturity is 03/10/2022

The Bond issued by Royal Bank of Canada ( Canada ) , in USD, with the ISIN code US78012KF281, was rated NR by Moody's credit rating agency.







424B2 1 form424b2.htm MXEA DUE OCTOBER 3, 2022 (FINAL)
RBC Ca pit a l M a rk e t s®
File d Pursua nt t o Rule 4 2 4 (b)(2 )
Re gist ra t ion St a t e m e nt N o. 3 3 3 -
2 0 8 5 0 7


Pricing Supplement
$3,359,000
Dated March 28, 2017

To the Product Prospectus Supplement ERN-EI-1 Dated January 12,
Barrier Return Notes
2016, Prospectus Supplement Dated January 8, 2016, and Prospectus
Linked to the MSCI EAFE® Index,
Dated January 8, 2016
Due October 3, 2022
Royal Bank of Canada





Royal Bank of Canada is offering the Barrier Return Notes (the "Notes") linked to the performance of the MSCI EAFE® Index (the "Reference Asset").
The CUSIP number for the Notes is 78012KF28. The Notes do not pay interest. The Notes provide a one-for-one positive return if the level of the Reference
Asset increases from the Initial Level to the Final Level. Investors are subject to one-for-one loss of the principal amount of the Notes in percentage terms if
the closing level of the Reference Asset on the Valuation Date is less than 50% of the Initial Level. Any payments on the Notes are subject to our credit risk.
Issue Date: March 31, 2017
Maturity Date: October 3, 2022
The Notes will not be listed on any securities exchange.
Investing in the Notes involves a number of risks. See "Risk Factors" beginning on page S-1 of the prospectus supplement dated January 8, 2016,
"Additional Risk Factors Specific to the Notes" beginning on page PS-4 of the product prospectus supplement dated January 12, 2016, and "Selected Risk
Considerations" beginning on page P-6 of this pricing supplement.
The Notes will not constitute deposits insured by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance Corporation or any other
Canadian or U.S. government agency or instrumentality.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined that
this pricing supplement is truthful or complete. Any representation to the contrary is a criminal offense.

Per Note

Total
Price to public(1)
100.00%

$3,359,000.00
Underwriting discounts and commissions
3.25%

$109,167.50
Proceeds to Royal Bank of Canada
96.75%

$3,249,832.50

(1)Certain dealers who purchase the notes for sale to certain fee-based advisory accounts may forego some or all of their underwriting discount or selling
concessions. The public offering price for investors purchasing the notes in these accounts may be between $967.50 and $1,000 per $1,000 in principal
amount.
The initial estimated value of the Notes as of the date of this pricing supplement is $942.46 per $1,000 in principal amount, which is less than the price to
public. The actual value of the Notes at any time will reflect many factors, cannot be predicted with accuracy, and may be less than this amount. We
describe our determination of the initial estimated value in more detail below.
RBC Capital Markets, LLC, which we refer to as RBCCM, acting as agent for Royal Bank of Canada, received a commission of $32.50 per $1,000 in
principal amount of the Notes and used a portion of that commission to allow selling concessions to other dealers of up to $32.50 per $1,000 in principal
amount of the Notes. The other dealers may forgo, in their sole discretion, some or all of their selling concessions. See "Supplemental Plan of Distribution
(Conflicts of Interest)" on page P-15 below.
Non-U.S. holders will not be subject to withholding on dividend equivalent payments under Section 871(m) of the U.S. Internal Revenue Code.
Please see the section below, "Supplemental Discussion of U.S. Federal Income Tax Consequences," which applies to the Notes.
We may use this pricing supplement in the initial sale of the Notes. In addition, RBCCM or another of our affiliates may use this pricing supplement in a
market-making transaction in the Notes after their initial sale. Unless we or our agent informs the purchaser otherwise in the confirmation of sale, this
pricing supplement is being used in a market-making transaction.

RBC Capital Markets, LLC

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Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

SU M M ARY
The information in this "Summary" section is qualified by the more detailed information set forth in this pricing supplement, the
product prospectus supplement, the prospectus supplement, and the prospectus.
Issuer:
Royal Bank of Canada ("Royal Bank")
Issue:
Senior Global Medium-Term Notes, Series G
Underwriter:
RBC Capital Markets, LLC ("RBCCM")
Reference Asset:
MSCI EAFE® Index
Bloomberg Ticker:
MXEA
Currency:
U.S. Dollars
Minimum Investment:
$1,000 and minimum denominations of $1,000 in excess thereof
Pricing Date:
March 28, 2017
Issue Date:
March 31, 2017
CUSIP:
78012KF28
Valuation Date:
September 28, 2022
Payment at Maturity
If, on the Valuation Date, the Percentage Change is posit ive , then the investor will receive an amount
(if held to maturity):
per $1,000 principal amount per Note equal to:
Principal Amount + (Principal Amount x Percentage Change)
If, on the Valuation Date, the Percentage Change is le ss t ha n or e qua l t o 0 % , but t he Fina l Le ve l
is not le ss t ha n t he Ba rrie r Le ve l (that is, the Percentage Change is between zero and -50%), then
the investor will receive the principal amount only.
If, on the Valuation Date, the Final Level is le ss t ha n t he Ba rrie r Le ve l (that is, the Percentage
Change is between -50.01% and -100%), then the investor will receive a cash payment equal to:
Principal Amount + (Principal Amount x Percentage Change)
In this case, you will lose all or a portion of the principal amount of the Notes.
Percentage Change:
The Percentage Change, expressed as a percentage, is calculated using the following formula:



P-2
RBC Capital Markets, LLC



Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

Initial Level:
1,812.06, which was the closing level of the Reference Asset on the Pricing Date.
Final Level:
The closing level of the Reference Asset on the Valuation Date.
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Barrier Level:
906.03, which is 50% of the Initial Level (rounded to two decimal places).
Maturity Date:
October 3, 2022 subject to extension for market and other disruptions, as described in the product
prospectus supplement dated January 12, 2016.
Term:
Five and a half (5.5) years
Principal at Risk:
T he N ot e s a re NOT princ ipa l prot e c t e d. Y ou m a y lose a subst a nt ia l port ion of your
princ ipa l a m ount a t m a t urit y if t he re is a pe rc e nt a ge de c re a se from t he I nit ia l Le ve l t o
t he Fina l Le ve l of m ore t ha n 5 0 % .
Calculation Agent:
RBCCM
U.S. Tax Treatment:
By purchasing a Note, each holder agrees (in the absence of a change in law, an administrative
determination or a judicial ruling to the contrary) to treat the Note as a pre-paid cash-settled derivative
contract for U.S. federal income tax purposes. However, the U.S. federal income tax consequences of
your investment in the Notes are uncertain and the Internal Revenue Service could assert that the Notes
should be taxed in a manner that is different from that described in the preceding sentence. Please see
the section below, "Supplemental Discussion of U.S. Federal Income Tax Consequences," and the
discussion (including the opinion of our counsel Morrison & Foerster LLP) in the product prospectus
supplement dated January 12, 2016 under "Supplemental Discussion of U.S. Federal Income Tax
Consequences," which apply to the Notes.
Secondary Market:
RBCCM (or one of its affiliates), though not obligated to do so, plans to maintain a secondary market in the
Notes after the Issue Date. T he a m ount t ha t you m a y re c e ive upon sa le of your N ot e s prior
t o m a t urit y m a y be le ss t ha n t he princ ipa l a m ount of your N ot e s.
Listing:
The Notes will not be listed on any securities exchange.
Clearance and
DTC global (including through its indirect participants Euroclear and Clearstream, Luxembourg as
Settlement:
described under "Description of Debt Securities--Ownership and Book-Entry Issuance" in the prospectus
dated January 8, 2016).
Terms Incorporated
All of the terms appearing above the item captioned "Secondary Market" on pages P-2 and P-3 of this
in the Master Note:
pricing supplement and the terms appearing under the caption "General Terms of the Notes" in the product
prospectus supplement dated January 12, 2016, as modified by this pricing supplement.


P-3
RBC Capital Markets, LLC



Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

ADDI T I ON AL T ERM S OF Y OU R N OT ES
You should read this pricing supplement together with the prospectus dated January 8, 2016, as supplemented by the prospectus
supplement dated January 8, 2016 and the product prospectus supplement dated January 12, 2016, relating to our Senior Global
Medium-Term Notes, Series G, of which these Notes are a part. Capitalized terms used but not defined in this pricing supplement
will have the meanings given to them in the product prospectus supplement. In the event of any conflict, this pricing supplement
will control. The Notes vary from the terms described in the product prospectus supplement in several important ways.
You should read this pricing supplement carefully.
This pricing supplement, together with the documents listed below, contains the terms of the Notes and supersedes all prior or
contemporaneous oral statements as well as any other written materials including preliminary or indicative pricing terms,
correspondence, trade ideas, structures for implementation, sample structures, brochures or other educational materials of ours.
You should carefully consider, among other things, the matters set forth in "Risk Factors" in the prospectus supplement dated
January 8, 2016 and "Additional Risk Factors Specific to the Notes" in the product prospectus supplement dated January 12, 2016,
as the Notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal, tax,
accounting and other advisors before you invest in the Notes. You may access these documents on the Securities and Exchange
Commission (the "SEC") website at www.sec.gov as follows (or if that address has changed, by reviewing our filings for the relevant
date on the SEC website):
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Prospectus dated January 8, 2016:
http://www.sec.gov/Archives/edgar/data/1000275/000121465916008810/j18160424b3.htm
Prospectus Supplement dated January 8, 2016:
http://www.sec.gov/Archives/edgar/data/1000275/000121465916008811/p14150424b3.htm
Product Prospectus Supplement ERN-EI-1 dated January 12, 2016:
https://www.sec.gov/Archives/edgar/data/1000275/000114036116047560/form424b5.htm
Our Central Index Key, or CIK, on the SEC website is 1000275. As used in this pricing supplement, "we," "us," or "our" refers to
Royal Bank of Canada.


P-4
RBC Capital Markets, LLC



Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

H Y POT H ET I CAL RET U RN S
The examples set out below are included for illustration purposes only. The hypot he t ic a l Percentage Changes of the Reference
Asset used to illustrate the calculation of the Payment at Maturity (rounded to two decimal places) are not estimates or forecasts of
the Final Level or the level of the Reference Asset on any trading day prior to the Maturity Date. All examples assume that a
holder purchased Notes with an aggregate principal amount of $1,000, a Barrier Level of 50% of the Initial Level and that no
market disruption event occurs on the Valuation Date.

Example 1--
Calculation of the Payment at Maturity where the Percentage Change is positive.

Percentage Change:
10%

Payment at Maturity:
$1,000 + ($1,000 x 10%) = $1,000 + $100.00 = $1,100.00

On a $1,000 investment, a 10% Percentage Change results in a Payment at Maturity of $1,100.00, a 10.00%
return on the Notes.
Example 2--
Calculation of the Payment at Maturity where the Percentage Change is negative, but the Final Level is greater
than the Barrier Level.

Percentage Change:
-10%

In this case, even though the Percentage Change is negative, you will receive the principal amount of your Notes
at maturity, because the closing level of the Reference Asset on the Valuation Date is greater than 50% of the
Initial Level.

In this case, on a $1,000 investment, a -10% Percentage Change results in a Payment at Maturity of $1,000.00, a
0.00% return on the Notes.

Example 3--
Calculation of the Payment at Maturity where the Percentage Change is negative, and the Final Level is less than
the Barrier Level.

Percentage Change:
-60%

Payment at Maturity:
$1,000 + ($1,000 x -60%) = $1,000 - $600 = $400

In this case, on a $1,000 investment, a -60% Percentage Change results in a Payment at Maturity of $400.00, a -
60.00% return on the Notes.


P-5
RBC Capital Markets, LLC
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Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

SELECT ED RI SK CON SI DERAT I ON S
An investment in the Notes involves significant risks. Investing in the Notes is not equivalent to investing directly in the Reference
Asset. These risks are explained in more detail in the section "Additional Risk Factors Specific to the Notes," beginning on page
PS-4 of the product prospectus supplement. In addition to the risks described in the prospectus supplement and the product
prospectus supplement, you should consider the following:
·
Princ ipa l a t Risk ­ Investors in the Notes could lose some or all or a substantial portion of their principal amount if
there is a decline in the level of the Reference Asset. You will lose one percent of the principal amount of your Notes for
each 1% that the Final Level is less than the Initial Level if the Final Level is less than 50% of the Initial Level.
·
T he N ot e s Do N ot Pa y I nt e re st a nd Y our Re t urn M a y Be Low e r t ha n t he Re t urn on a Conve nt iona l
De bt Se c urit y of Com pa ra ble M a t urit y ­ There will be no periodic interest payments on the Notes as there would
be on a conventional fixed-rate or floating-rate debt security having the same maturity. The return that you will receive on
the Notes, which could be negative, may be less than the return you could earn on other investments. Even if your return
is positive, your return may be less than the return you would earn if you bought a conventional senior interest bearing debt
security of Royal Bank.
·
Pa ym e nt s on t he N ot e s Are Subje c t t o Our Cre dit Risk , a nd Cha nge s in Our Cre dit Ra t ings Are
Ex pe c t e d t o Affe c t t he M a rk e t V a lue of t he N ot e s ­ The Notes are Royal Bank's senior unsecured debt
securities. As a result, your receipt of the amount due on the maturity date is dependent upon Royal Bank's ability to
repay its obligations at that time. This will be the case even if the level of the Reference Asset increases after the Pricing
Date. No assurance can be given as to what our financial condition will be at the maturity of the Notes.
·
T he re M a y N ot Be a n Ac t ive T ra ding M a rk e t for t he N ot e s--Sa le s in t he Se c onda ry M a rk e t M a y Re sult
in Signific a nt Losse s ­ There may be little or no secondary market for the Notes. The Notes will not be listed on any
securities exchange. RBCCM and other affiliates of Royal Bank may make a market for the Notes; however, they are not
required to do so. RBCCM or any other affiliate of Royal Bank may stop any market-making activities at any time. Even if
a secondary market for the Notes develops, it may not provide significant liquidity or trade at prices advantageous to you.
We expect that transaction costs in any secondary market would be high. As a result, the difference between bid and
asked prices for your Notes in any secondary market could be substantial.
·
Y ou Will N ot H a ve Any Right s t o t he Se c urit ie s I nc lude d in t he Re fe re nc e Asse t ­ As a holder of the
Notes, you will not have voting rights or rights to receive cash dividends or other distributions or other rights that holders of
securities included in the Reference Asset would have. The Final Level will not reflect any dividends paid on the securities
included in the Reference Asset, and accordingly, any positive return on the Notes may be less than the potential positive
return on those securities.
·
T he I nit ia l Est im a t e d V a lue of t he N ot e s I s Le ss t ha n t he Pric e t o t he Public ­ The initial estimated value
set forth on the cover page of this pricing supplement does not represent a minimum price at which we, RBCCM or any of
our affiliates would be willing to purchase the Notes in any secondary market (if any exists) at any time. If you attempt to
sell the Notes prior to maturity, their market value may be lower than the price you paid for them and the initial estimated
value. This is due to, among other things, changes in the level of the Reference Asset, the borrowing rate we pay to issue
securities of this kind, and the inclusion in the price to the public of the underwriting discount and the estimated costs
relating to our hedging of the Notes. These factors, together with various credit, market and economic factors over the
term of the Notes, are expected to reduce the price at which you may be able to sell the Notes in any secondary market
and will affect the value of the Notes in complex and


P-6
RBC Capital Markets, LLC


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Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

unpredictable ways. Assuming no change in market conditions or any other relevant factors, the price, if any, at which you
may be able to sell your Notes prior to maturity may be less than your original purchase price, as any such sale price
would not be expected to include the underwriting discount and the hedging costs relating to the Notes. In addition to bid-
ask spreads, the value of the Notes determined for any secondary market price is expected to be based on the secondary
rate rather than the internal funding rate used to price the Notes and determine the initial estimated value. As a result, the
secondary price will be less than if the internal funding rate was used. The Notes are not designed to be short-term trading
instruments. Accordingly, you should be able and willing to hold your Notes to maturity.
·
T he I nit ia l Est im a t e d V a lue of t he N ot e s I s a n Est im a t e Only, Ca lc ula t e d a s of t he T im e t he T e rm s of
t he N ot e s We re Se t ­ The initial estimated value of the Notes is based on the value of our obligation to make the
payments on the Notes, together with the mid-market value of the derivative embedded in the terms of the Notes. See
"Structuring the Notes" below. Our estimate is based on a variety of assumptions, including our credit spreads,
expectations as to dividends, interest rates and volatility, and the expected term of the Notes. These assumptions are
based on certain forecasts about future events, which may prove to be incorrect. Other entities may value the Notes or
similar securities at a price that is significantly different than we do.
The value of the Notes at any time after the Pricing Date will vary based on many factors, including changes in market
conditions, and cannot be predicted with accuracy. As a result, the actual value you would receive if you sold the Notes in
any secondary market, if any, should be expected to differ materially from the initial estimated value of your Notes.
·
M a rk e t Disrupt ion Eve nt s a nd Adjust m e nt s ­ The payment at maturity and the Valuation Date are subject to
adjustment as described in the product prospectus supplement. For a description of what constitutes a market disruption
event as well as the consequences of that market disruption event, see "General Terms of the Notes--Market Disruption
Events" in the product prospectus supplement.
·
An I nve st m e nt in t he N ot e s I s Subje c t t o Risk s Assoc ia t e d w it h N on -U .S. Se c urit ie s M a rk e t s -- The
securities included in the Reference Asset have been issued by non-U.S. companies. An investment in securities linked to
the value of non-U.S. equity securities involves particular risks. Non-U.S. securities markets may be more volatile than U.S.
securities markets, and market developments may affect non-U.S. securities markets differently from the U.S. securities
markets. Direct or indirect government intervention to stabilize these non-U.S. securities markets, as well as cross
shareholdings among non-U.S. companies, may affect trading prices and volumes in those markets. Also, there is generally
less publicly available information in the U.S. about non-U.S. companies than about those U.S. companies that are subject
to the reporting requirements of the SEC, and non-U.S. companies are subject to accounting, disclosure, auditing and
financial reporting standards and requirements that differ from those applicable to U.S. reporting companies.
Prices of securities in non-U.S. countries are subject to political, economic, financial and social factors that may be unique
to the particular countries. These factors, which could negatively affect the non-U.S. securities markets, include the
possibility of recent or future changes in the economic and fiscal policies of non-U.S. governments, the possible imposition
of, or changes in, currency exchange laws or other non-U.S. laws or restrictions applicable to non-U.S. companies or
investments in non-U.S. equity securities, the possibility of fluctuations in the rate of exchange between currencies, the
possibility of outbreaks of hostility and political instability and the possibility of natural disaster or adverse public health
developments in the relevant region. Moreover, the economies of certain foreign countries may differ favorably or
unfavorably from the U.S. economy in important respects, such as growth of gross national product, rate of inflation, trade
surpluses or deficits, capital reinvestment, resources and self-sufficiency.


P-7
RBC Capital Markets, LLC



Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022
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·
As a H olde r of t he N ot e s, Y ou Will N ot H a ve Dire c t Ex posure t o Fluc t ua t ions in t he Ex c ha nge Ra t e s
Re la t e d t o t he Re fe re nc e Asse t -- The value of the Notes will not be adjusted for exchange rate fluctuations
between the U.S. dollar and the currencies in which the securities included in the Reference Asset are traded, even though
any currency fluctuations could affect the performance of the Reference Asset. Therefore, if any of these currencies
appreciates or depreciates relative to the U.S. dollar over the term of the Notes, you will not receive any additional payment
or incur any reduction in any payment on the Notes.


P-8
RBC Capital Markets, LLC



Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

I N FORM AT I ON REGARDI N G T H E REFEREN CE ASSET
We have derived all information contained in this document regarding the MXEA, including, without limitation, its make-up, method
of calculation, and changes in its components, from publicly available sources. The information reflects the policies of, and is
subject to change by, the index sponsor. The index sponsor, which owns the copyright and all other rights to the MXEA, has no
obligation to continue to publish, and may discontinue publication of the MXEA. None of us or RBCCM accepts any responsibility
for the calculation, maintenance or publication of the MXEA or any successor index.
Com posit ion a nd M a int e na nc e
The MXEA is intended to measure equity market performance in developed market countries, excluding the United States and
Canada. The MXEA is a free float-adjusted market capitalization equity index with a base date of December 31, 1969 and an initial
value of 100. The MXEA is calculated daily in U.S. dollars and published in real time every 60 seconds during market trading
hours. As of December 30, 2016, the MXEA consisted of companies from the following 21 developed countries: Australia, Austria,
Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway,
Portugal, Singapore, Spain, Sweden, Switzerland and United Kingdom.
The MXEA is comprised of companies in both the Large Cap Index and Mid Cap Index, as discussed in the section "--Defining
Market Capitalization Size Segments for Each Market" below.
The MXEA is part of the MSCI Market Cap Weighted Indices series and is an MSCI Global Investable Market Index, which is a
family within the MSCI equity indices.
Constructing the MSCI Global Investable Market Indices. MSCI undertakes an index construction process, which involves:
·
defining the equity universe;
·
determining the market investable equity universe for each market;
·
determining market capitalization size segments for each market;
·
applying index continuity rules for the MSCI Standard Index;
·
creating style segments within each size segment within each market; and
·
classifying securities under the Global Industry Classification Standard (the "GICS").
Defining the Equity Universe. The equity universe is defined by:
·
Identifying Eligible Equity Securities: the equity universe initially looks at securities listed in any of the countries in the
MSCI Global Index Series, which will be classified as Developed Markets ("DM"), Emerging Markets ("EM") or Frontier
Markets ("FM"). All listed equity securities including Real Estate Investment Trusts and certain income trusts in Canada are
eligible for inclusion in the equity universe. Limited partnerships, limited liability companies, and business trusts, which are
listed in the United States and are not structured to be taxed as limited partnerships, are likewise eligible for inclusion in
the equity universe. Conversely, mutual funds, ETFs, equity derivatives and most investment trusts are not eligible for
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inclusion in the equity universe.
·
Classifying Eligible Securities into the Appropriate Country: each company and its securities (i.e., share classes) are
classified in only one country.
Determining the Market Investable Equity Universes. A market investable equity universe for a market is derived by identifying
eligible listings for each security in the equity universe, and applying investability screens to individual companies and securities in
the equity universe that are classified in that market. A market is equivalent to a single country, except in DM Europe, where all
DM countries in Europe are aggregated into a single market for index construction purposes. Subsequently, individual DM Europe
country indices within the MSCI Europe Index are derived from the constituents of the MSCI Europe Index under the global
investable market indices methodology.


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RBC Capital Markets, LLC



Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

In identifying eligible listings, a security may have a listing in the country where it is classified (i.e. "local listing") and/or in a
different country (i.e. "foreign listing"). Securities may be represented by either a local listing or a foreign listing (including a
depositary receipt) in the global investable equity universe. A security may be represented by a foreign listing only if the following
conditions are met:
·
The security is classified in a country that meets the Foreign Listing Materiality Requirement, and
·
The security's foreign listing is traded on an eligible stock exchange of: (a) a DM country if the security is classified in
a DM country; (b) a DM or an EM country if the security is classified in an EM country; or (c) a DM, EM or FM country
if the security is classified in an FM country.
The investability screens used to determine the investable equity universe in each market are as follows:
·
Equity Universe Minimum Size Requirement: this investability screen is applied at the company level. In order to be
included in a market investable equity universe, a company must have the required minimum full market capitalization.
·
Equity Universe Minimum Free Float-Adjusted Market Capitalization Requirement: this investability screen is applied at
the individual security level. To be eligible for inclusion in a market investable equity universe, a security must have a
free float-adjusted market capitalization equal to or higher than 50% of the equity universe minimum size requirement.
·
DM and EM Minimum Liquidity Requirement: this investability screen is applied at the individual security level. To be
eligible for inclusion in a market investable equity universe, a security must have adequate liquidity. The twelve-month
and three-month Annual Traded Value Ratio ("ATVR"), a measure that mitigates the impact of extreme daily trading
volumes and takes into account the free float-adjusted market capitalization of securities, together with the three-month
frequency of trading are used to measure liquidity. A minimum liquidity level of 20% of three- and twelve-month ATVR
and 90% of three-month frequency of trading over the last four consecutive quarters are required for inclusion of a
security in a market investable equity universe of a DM, and a minimum liquidity level of 15% of three- and twelve-
month ATVR and 80% of three-month frequency of trading over the last four consecutive quarters are required for
inclusion of a security in a market investable equity universe of an EM.
·
Global Minimum Foreign Inclusion Factor Requirement: this investability screen is applied at the individual security
level. To be eligible for inclusion in a market investable equity universe, a security's Foreign Inclusion Factor ("FIF")
must reach a certain threshold. The FIF of a security is defined as the proportion of shares outstanding that is
available for purchase in the public equity markets by international investors. This proportion accounts for the available
free float of and/or the foreign ownership limits applicable to a specific security (or company). In general, a security
must have an FIF equal to or larger than 0.15 to be eligible for inclusion in a market investable equity universe.
·
Minimum Length of Trading Requirement: this investability screen is applied at the individual security level. For an
initial public offering ("IPO") to be eligible for inclusion in a market investable equity universe, the new issue must have
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started trading at least three months before the implementation of a Semi-Annual Index Review (as described below).
This requirement is applicable to small new issues in all markets. Large IPOs and large primary/secondary offerings of
non-index constituents are not subject to the minimum length of trading requirement and may be included in a market
investable equity universe and the Standard Index outside of a Quarterly or Semi-Annual Index Review.
·
Minimum Foreign Room Requirement: this investability screen is applied at the individual security level. For a security
that is subject to a foreign ownership limit to be eligible for inclusion in a market investable equity universe, the
proportion of shares still available to foreign investors relative to the maximum allowed (referred to as "foreign room")
must be at least 15%.


P-10
RBC Capital Markets, LLC



Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

Defining Market Capitalization Size Segments for Each Market. Once a market investable equity universe is defined, it is
segmented into the following size-based indices:
·
Investable Market Index (Large + Mid + Small);
·
Standard Index (Large + Mid);
·
Large Cap Index;
·
Mid Cap Index; or
·
Small Cap Index.
Creating the size segment indices in each market involves the following steps:
·
defining the market coverage target range for each size segment;
·
determining the global minimum size range for each size segment;
·
determining the market size-segment cutoffs and associated segment number of companies;
·
assigning companies to the size segments; and
·
applying final size-segment investability requirements.
Index Continuity Rules for the Standard Indices. In order to achieve index continuity, as well as to provide some basic level of
diversification within a market index, and notwithstanding the effect of other index construction rules described in this section, a
minimum number of five constituents will be maintained for a DM Standard Index and a minimum number of three constituents will
be maintained for an EM Standard Index.
Creating Style Indices within Each Size Segment. All securities in the investable equity universe are classified into value or growth
segments using the MSCI Global Value and Growth methodology.
Classifying Securities under the Global Industry Classification Standard. All securities in the global investable equity universe are
assigned to the industry that best describes their business activities. To this end, MSCI has designed, in conjunction with S&P
Global, the GICS. Under the GICS, each company is assigned uniquely to one sub-industry according to its principal business
activity. Therefore, a company can belong to only one industry grouping at each of the four levels of the GICS.
I nde x M a int e na nc e
The MSCI global investable market indices are maintained with the objective of reflecting the evolution of the underlying equity
markets and segments on a timely basis, while seeking to achieve index continuity, continuous investability of constituents and
replicability of the indices, index stability and low index turnover. In particular, index maintenance involves:
(i)
Semi-Annual Index Reviews ("SAIRs") in May and November of the Size Segment and Global Value and Growth
Indices which include:
https://www.sec.gov/Archives/edgar/data/1000275/000114036117013881/form424b2.htm[3/30/2017 3:46:26 PM]



a.
updating the indices on the basis of a fully refreshed equity universe;

b.
taking buffer rules into consideration for migration of securities across size and style segments; and

c.
updating FIFs and Number of Shares ("NOS").

(ii)
Quarterly Index Reviews ("QIRs") in February and August of the Size Segment Indices aimed at:

a.
including significant new eligible securities (such as IPOs that were not eligible for earlier inclusion) in the index;

b.
allowing for significant moves of companies within the Size Segment Indices, using wider buffers than in the SAIR; and

c.
reflecting the impact of significant market events on FIFs and updating NOS.


P-11
RBC Capital Markets, LLC



Barrier Return Notes
Linked to the MSCI EAFE® Index,
Due October 3, 2022

(iii)
Ongoing Event-Related Changes: changes of this type are generally implemented in the indices as they occur.
Significantly large IPOs are included in the indices after the close of the company's tenth day of trading.
I nde x Ca lc ula t ion
The MSCI equity indices are free float-adjusted market capitalization indices that are designed to measure the market performance,
including price performance, of the equity securities in an index. The MSCI equity indices are calculated using the Laspeyres'
concept of a weighted arithmetic average together with the concept of chain-linking. Each index component is included at a weight
that reflects the ratio of its free float-adjusted market capitalization (i.e., free public float multiplied by price) to the free float-
adjusted market capitalization of all the components included in the index. MSCI defines the free float of a security as the
proportion of shares outstanding that is deemed to be available for purchase in the public equity markets by international investors.
Each MSCI Global Investable Market Index is calculated in the relevant local currency as well as in U.S. dollars, with price, gross
and net returns.
Neither we nor any of our affiliates, including the selling agents, accepts any responsibility for the calculation, maintenance, or
publication of, or for any error, omission, or disruption in, the MXEA or any successor to the MXEA.
Lic e nse Agre e m e nt
We have entered into a non-exclusive license agreement with MSCI providing for the license to us and certain of our affiliated or
subsidiary companies, in exchange for a fee, of the right to use indices owned and published by MSCI (including the MXEA) in
connection with certain securities, including the Notes offered hereby.
The license agreement between us and MSCI requires that the following language be stated in this document:
The Notes are not sponsored, endorsed, sold or promoted by MSCI or any affiliate of MSCI. Neither MSCI nor any other party
makes any representation or warranty, express or implied, to the owners of the Notes or any member of the public regarding the
advisability of investing in Notes generally or in the Notes or the ability of the MSCI EAFE® Index to track general stock market
performance. MSCI is the licensor of certain trademarks, service marks and trade names of MSCI and of the MSCI EAFE® Index,
which is determined, composed and calculated by MSCI without regard to the securities or Royal Bank of Canada. MSCI has no
obligation to take the needs of Royal Bank of Canada or the owners of the Notes into consideration in determining, composing or
calculating the MSCI EAFE® Index. MSCI is not responsible for and has not participated in the determination of the timing of,
pricing at or quantities of the Notes or in the determination or calculation of the equation by which the Notes are redeemable for
cash. Neither MSCI nor any other party has any obligation or liability to owners of the Notes in connection with the administration,
marketing or trading of the Notes.
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI
EAFE® INDEX FROM SOURCES WHICH MSCI CONSIDERS RELIABLE, NEITHER MSCI NOR ANY OTHER PARTY
GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE MSCI EAFE® INDEX OR ANY DATA INCLUDED
THEREIN. NEITHER MSCI NOR ANY OTHER PARTY MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO
https://www.sec.gov/Archives/edgar/data/1000275/000114036117013881/form424b2.htm[3/30/2017 3:46:26 PM]


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