STRUCTURED PRODUCTS Weekly Ideas 00
2 222 Table of Contents 0/04/2009 New Issues USD Month Microsoft Reverse Convertible USD 2 Year Floating Rate Note 4 USD Year Floating Rate Note 5 Trade Ideas 6 USD 2 Year Equity Linked Brazil, India and China Note 6 EUR 6 Month Total Reverse Convertible 7 USD Month Gold Linked Yield Enhancement Note 8 Secondary Offerings 9 USD Principal Protected Inflation Linked Notes 9 USD Principal Protected Callable Range Accrual Notes 0 Market Data Contact Us 2 Disclaimer 2
New Issues USD Month Microsoft Reverse Convertible Open Until 9 April 2009 Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. This Month Reverse Convertible pays a 4% guaranteed per annum coupon. The note will pay back 00% of the capital invested unless a 60% American barrier is breached. There is a chance that the investor will receive physical delivery of the Underlying at maturity if the barrier has been breached. Term: Months Currency: USD Underlying: Microsoft Corporation (Bloomberg ticker: MSFT US) Trade Date: 2 April 2009 Initial Reference Date: 2 April 2009 Settlement Date: 6 April 2009 Final Reference Date: 2 July 2009 Maturity Date: 6 July 2009 ISIN: XS042504 Denominations: USD,000 Coupon: 4.00% p.a.,.50% bullet coupon Initial Level: USD 9.29 Barrier Level: USD.574(60% of the Initial Level) Barrier Type: American continuous barrier Redemption at Maturity: If at Maturity, ) Final Level > Initial Level, investor will receive 00% Principal Invested 2) Final Level < Initial Level and has never traded at or below the Barrier Level at anytime during the term of the note, the investor will receive: 00% Principal Invested ) Final Level < Initial Level and has traded at or below the Barrier Level at anytime during the term of the note, the investor will receive physical delivery of the Underlying given by: (per denomination) USD,000 / Initial Level Bullet Coupon of.50% guaranteed in all scenarios Historical Performance Source: Bloomberg as of 2 nd April 2009
4 444 New Issues USD 2 Year Floating Rate Note Open Until 9 April 2009 This 2 Year Floating Rate Note pays a coupon of USD m Libor + 50bps every quarter. Investors investing into the note will be able to benefit from yield enhancement. Term: 2 Years Currency: USD Trade Date: 2 March 2009 Settlement Date: 5 April 2009 Maturity Date: 5 April 20 ISIN: XS0420425 Denominations: USD 00,000 Coupon: USD m Libor + 50 bps (p.a.) Coupon Payment Dates: 5 th of each January, April, July and October in each year and on Maturity Date, subject to adjustment in accordance to Day Count Basis Day Count Basis: Act / 60 Adjusted Libor Fixing Date: 2 business days before each Coupon Payment Date Redemption at Maturity: 00% of Principal Invested Payoff Illustration.5 Payoff Illustration Coupon Rate (% p.a.) 2.5 2.5 0.5 USD m Libor Forw ard USD m Libor Forw ard + 50bps 0 Mar-09 Jun-09 Sep-09 Dec-09 Mar-0 Jun-0 Sep-0 Dec-0 Mar- Forward Curve Source: Bloomberg as of 20 th March 2009 4 4
5 555 New Issues USD Year Floating Rate Note Open Until 9 April 2009 This Year Floating Rate Note pays a coupon of USD m Libor + 76bps every quarter. Investors investing into the note will be able to benefit from yield enhancement. Term: Years Currency: USD Trade Date: 8 April 2009 Settlement Date: 6 April 2009 Maturity Date: 6 April 202 ISIN: TBC Denominations: USD 00,000 Coupon: USD m Libor + 76 bps (p.a.) Coupon Payment Dates: 6 th of each January, April, July and October in each year and on Maturity Date, subject to adjustment in accordance to Day Count Basis Day Count Basis: Act / 60 Adjusted Libor Fixing Date: 2 business days before each Coupon Payment Date Redemption at Maturity: 00% of Principal Invested Payoff Illustration 4 Payoff Illustration.5 Coupon Rate (% p.a.) 2.5 2.5 0.5 USD m Libor Forward USD m Libor Forward + 76bps 0 Apr-09 Jul-09 Oct-09 Jan-0 Apr-0 Jul-0 Oct-0 Jan- Apr- Jul- Oct- Jan-2 Apr-2 Forward Curve Source: Bloomberg as of 2 nd April 2009 5 5
6 666 Trade Ideas USD 2 Year Equity Linked Brazil, India and China Note This 2 Year Equity Linked BIC Note provides 95% capital guarantee and pays 60% participation on the upside performance of the Underlying basket. The Underlying basket consists of funds and ETFs which track the performances of equities in Brazil, India and China. There is a local cap of 25% on each individual underlying therefore the investor has the potential to receive a maximum redemption of 0% of principal invested at maturity. Term: 2 Years Currency: USD Trade Date: [ ] April 2009 Initial Reference Date: [ ] April 2009 Settlement Date: [ ] April 2009 Final Reference Date: [ ] April 20 Maturity Date: [ ] April 20 ISIN: TBC Denominations: USD,000 Underlying: Equally weighted Basket: Basket Underlying Bloomberg Ticker Weighting ishares MSCI Brazil Index Fund EWZ US Equity ishares FTSE/Xinhua China 25 Index Fund FXI US Equity HSBC Indian Equity Fund HSBCINE LX Equity Capital Protection: Averaging: Participation Rate: Local Cap: Redemption at Maturity: 95% principal invested None 60% on upside performance 25% of the Initial Level At Maturity, the investor will receive: 95% principal invested + Max [ 0, Participation Rate * Basket Performance ] Where Final i - Initial i Basket Performance = * min [ 25%, ] i= Initial i Final i = Closing Level of the Basket Underlying i on the Final Reference Date Initial i = Closing Level of the Basket Underlying i on the Initial Reference Date 6 6
7 777 Trade Ideas EUR 6 Month Total Reverse Convertible Total SA explores for, produces, refines, transports, and markets oil and natural gas. This 6 Month Reverse Convertible pays a 2.40% guaranteed per annum coupon. The note will pay back 00% of the capital invested unless a 70% European barrier is breached. There is a chance that the investor will receive physical delivery of the Underlying at maturity if barrier is breached. Term: 6 Months Currency: EUR Underlying: Total SA (Bloomberg ticker: FP FP) Trade Date: [ ] April 2009 Initial Reference Date: [ ] April 2009 Settlement Date: [ ] April 2009 Final Reference Date: [ ] October 2009 Maturity Date: [ ] October 2009 ISIN: TBC Denominations: EUR,000 Coupon: 2.40% p.a., 6.20% bullet coupon Initial Level: TBC Barrier Level: TBC (70% of the Initial Level) Barrier Type: European barrier Redemption at Maturity: If at Maturity, ) Final Level > Barrier Level, investor will receive 00% Principal Invested ) Final Level < = Barrier Level, the investor will receive physical delivery of the Underlying given by: (per denomination) EUR,000 / Initial Level Bullet Coupon of 6.20% guaranteed in all scenarios Historical Performance Source: Bloomberg as of 6 th April 2009 7 7
8 888 Trade Ideas USD Month Gold Linked Yield Enhancement Note ETFS Physical Gold is an open-ended Exchange Traded Commodity, incorporated in Jersey and UCITS eligible. This Month Gold Linked Yield Enhancement Note pays a 8.20% guaranteed per annum coupon. The note will pay back 00% of the capital invested unless the Put Strike is breached. The investor will receive physical delivery of the Underlying at the specified Put Strike at maturity if barrier is breached. Term: Months Currency: USD Underlying: ETFS Physical Gold (Bloomberg ticker: PHAU LN) Trade Date: [ ] April 2009 Initial Reference Date: [ ] April 2009 Settlement Date: [ ] April 2009 Final Reference Date: [ ] July 2009 Maturity Date: [ ] July 2009 ISIN: TBC Denominations: USD,000 Coupon: 8.20% p.a., 4.55% bullet coupon Initial Level: TBC Put Strike: $85 Spot Reference: $87.22 Redemption at Maturity: If at Maturity, ) Final Level > Put Strike, investor will receive 00% Principal Invested ) Final Level < Put Strike, the investor will receive physical delivery of the Underlying given by: (per denomination) USD,000 / Put Strike Bullet Coupon of 4.55% guaranteed in all scenarios Historical Performance Source: Bloomberg as of 6 th April 2009 8 8
9 999 Secondary Offerings USD Principal Protected Inflation Linked Notes The Principal Protected Inflation Linked Notes pay a coupon linked to the US CPI and offer 00% principal protection if the investor holds the note to maturity. Periodic coupons will be paid to the investor calculated by a spread over the year on year change in the US CPI Index. Issuer: RBC [Aaa/AA-] Issue Type: US Medium Term Note Currency: USD Denominations: USD,000 Coupon Frequency: Monthly Redemption at Maturity: 00% principal invested Pricings: CUSIP Maturity Coupon April 09 Coupon May 09 Coupon Size Available 78008GUJ9 6 April 202 YoY US CPI + 00bps.00%.26% 45,000 78008GKT8 6 July 20 YoY US CPI + 00bps 0.80%.06% 05,000 78008GDG4 22 November 20 YoY US CPI + 00bps.00%.26% 45,000 78008GEK4 7 December 20 YoY US CPI + 00bps.00%.26% 5,000 78008GGZ9 27 December 20 YoY US CPI + 00bps.00%.26% 25,000 78008GNW8 28 August 205 YoY US CPI + 40bps.040%.66% 50,000 78008GLB6 January 206 YoY US CPI + 05bps.080%.286% 2,000 Historical US CPI Index Movements Source: Bloomberg as of 2 nd April 2009 9 9
0 000 Secondary Offerings USD Principal Protected Callable Range Accrual Notes The Callable Range Accrual Notes pay periodic coupons based on the movement of the Underlying. The coupons are accrued daily and paid periodically subject to the Underlying falling within a specific range. Investors will receive 00% principal back at maturity. Currency: USD Denominations: USD,000 Redemption at Maturity: 00% principal invested Pricings: ISIN Maturity Description Coupon Range Underlying XS044828024 Feb 8 0YNCM Libor Range Accrual 7.5% * n/n 0-6.5% m USD Libor XS05290628 Mar 8 0YNCM Residual CMS Range Accrual 7.00% * n/n 0 6% CMS Step Down XS04902946 Mar 8 0YNCM CMS Range Accrual 7.25% * n/n 0 6% 0 Year CMS XS060282 May 8 0YNCM Libor Range Accrual 7.00% * n/n 0 7% m USD Libor XS0028002 Jun 9 2YNCM Libor Range Accrual 7.70% * n/n 0 7% m USD Libor XS04680 Dec 22 5YNCM Libor Range Accrual 8.0% * n/n 0 7% m USD Libor XS049448 Mar 2 5YNCM Libor Range Accrual 9.00% * n/n 0 7% 6m USD Libor XS0552845 Mar 2 5YNCM Libor Range Accrual 9.5% * n/n 0 6.25% m USD Libor Size Available: ISIN Size Available XS044828024 860,000 XS05290628 600,000 XS04902946 200,000 XS060282 90,000 XS0028002 200,000 XS04680 80,000 XS049448 250,000 XS0552845 400,000 0 0
Market Data This data has been obtained from various market sources including Bloomberg. Interest Rates Canada United States EUR Zone United Kingdom Yield Bank Yield Fed Yield* Repo rate Yield Base Rate Funds Rate 2 Yr 0 Yr 2 Yr 0 Yr 2 Yr 0 Yr 2 Yr 0 Yr 0/04/09 0.972 2.90 0.50 0.94 2.874 0.25.50.29.25.9.42 0.50 27/0/09.09 2.88 0.50 0.879 2.72 0.25.05.077.50.275.290 0.50 20/0/09 0.995 2.70 0.50 0.80 2.584 0.25.20.000.50..02 0.50 * German Bunds are used as a reference Currencies GBP/USD EUR/USD USD/JPY GBP / EUR GBP / CHF USD/CAD EUR/CAD CAD/JPY 0/04/09.489.47 99.98.029.680.226.656 8.2 27/0/09.40.0 98.0.077.69.2402.6499 79.0 20/0/09.4497.64 95.0.0627.627.267.6874 77.04 Commodities Gold (USD) Silver (USD) WTI Crude Oil (USD) Brent Crude Oil (USD) 0/04/09 987.05 2.78 52.4 5.4 27/0/09 9226.5.5 5.94 5.64 20/0/09 956.85.62 5.80 5. Equities FTSE 00 Eurostoxx 50 S&P 500 Nikkei Hang Seng 0/04/09 4029.67 298.75 85.25 9749.84 4545.69 27/0/09 894.4 2.08 822.74 8626.97 49.50 20/0/09 827.54 202.90 78.25 7945.96 28.5
2 222 Contact Us Structured Products, Private Bank Sales Contact Email Telephone Number Rupa Ganatra Rupa.ganatra@rbccm.com +44 207 029 7046 Olivier Rodieux Olivier.rodieux@rbccm.com +4 2 0 28 64 Michela Borgia Michela.borgia@rbccm.com +44 207 029 7404 Belle Leung Belle.leung@rbccm.com +44 207 029 7046 Mark Gerchen Mark.gerchen@rbccm.com +44 207 029 796 2 2
Disclaimer THE ABOVE IS A SUMMARY OF THE INDICATIVE TERMS AND CONDITIONS OF A PROPOSED TRANSACTION AND DOES NOT INCLUDE ALL DEFINED TERMS. ALL THE INDICATIVE TERMS AND CONDITIONS ABOVE ARE SUBJECT TO CHANGE, THEREFORE NO RELIANCE SHOULD BE PLACED ON THIS SUMMARY. WHEN MAKING AN INVESTMENT DECISION, ANY PROSPECTIVE INVESTOR SHOULD RELY SOLELY ON THE FINAL PRICING SUPPLEMENT OR LOAN DOCUMENTATION, WHICH WILL CONTAIN THE FINAL TERMS AND CONDITIONS OF THE TRANSACTION, NOT ON THE SUMMARY ABOVE. This document has been prepared by RBC for information or discussion purposes only and shall not be construed as and does not form part of an offer, nor an invitation to offer, nor a solicitation or recommendation to enter into any transaction, nor is it an official or unofficial confirmation of terms. Although the indicative information set forth herein is reflective of terms, as of the date of this communication, under which we believe an issuance of securities or other transactions might be structured, no assurance can be given that such an issuance or transaction could in fact be executed, nor is the issuer obligated to issue such securities or obligations. We have sent you this document in our capacity as a potential counterparty acting at arm's length. We are not acting as your financial adviser nor in a fiduciary capacity in respect of the proposed transaction, including the securities or other obligations referred to herein, or any other transaction with you unless otherwise expressly agreed by us in writing. Also no representation is made concerning the tax implications in any applicable jurisdiction of this proposed transaction involving the securities or other obligation referred to herein and we are not advising you in respect of the tax implications. Before entering into any transaction you should take steps to ensure that you understand the transaction and have made an independent assessment of the appropriateness of the transaction in light of your own objectives and circumstances, including the possible risks and benefits of entering into such a transaction and also the tax implications of entering into this proposed transaction, including seeking tax advice in any applicable jurisdiction. Reference must be made to the official offering or other transaction document This document is being provided to you based on our reasonable belief that you are a sophisticated institutional investor that is capable of assessing the merits and risk of the matters discussed herein. It is expressly not directed at private or retail clients. Institutions referencing this document or extracting information from this document with which to advise their clients will need to ensure that the information satisfies their local jurisdictional requirements and applicable securities laws for conducting business with private and / or retail clients In addition to the specific restrictions in relation to offers in the EEA, Switzerland and Canada described in the termsheet, any on-sales, subsequent offer or buy back of Notes should only be made in accordance with any applicable law and regulation. In particular any applicable securities laws or regulations relating to the requirement for a prospectus or other prescribed disclosure or any requirement to conduct suitability or appropriateness assessments and any requirement regarding the disclosure of commissions and/or fees and/or non monetary benefits paid or received should be complied with. Royal Bank of Canada Europe Limited is authorized and regulated by the Financial Services Authority. This document is confidential, and no part of it may be reproduced, distributed or transmitted without the prior written permission of Royal Bank of Canada Europe Limited. Royal Bank of Canada Europe Limited 2008 (all rights reserved).