[FWP] Bank of Nova Scotia Free Writing Prospectus
Bank of Montreal (BMO) is offering US$3.75 million of three-year Senior Medium-Term Notes, Series K, structured as Autocallable Barrier Notes with Memory Coupons. The notes are linked to the least-performing of the S&P 500, Russell 2000 and EURO STOXX 50 indices. Investors receive a contingent quarterly coupon of 2.3375 % (≈ 9.35 % p.a.) on any Observation Date when the closing level of each index is at or above its respective Coupon Barrier (70 % of the Initial Level). Missed coupons are not lost: the Memory feature pays previously unpaid coupons once the barrier is met on a later date.
Automatic redemption may occur on any quarterly Observation Date starting 7 Jul 2026 if all three indices close at or above 100 % of their Initial Levels. In that case, holders receive par plus any due coupons and the note terminates early.
Principal is at risk. If the note is not called and any index finishes below its 70 % Trigger Level on the 5 Jul 2028 Valuation Date, investors lose 1 % of principal for every 1 % decline of the worst-performing index, potentially losing the entire investment. Otherwise, principal is returned in full at maturity.
Key terms: Initial Levels—SPX 6,227.42; RTY 2,226.377; SX5E 5,318.72. Coupon/Trigger/Barrier levels equal 70 % of each Initial Level. Issue price 100 % of par; estimated initial value 97.683 %; agent’s commission 0.60 %. Settlement 8 Jul 2025; maturity 10 Jul 2028. The notes are unsecured, unsubordinated obligations of BMO, subject to its credit risk, and will not be listed on any exchange.
The pricing supplement highlights numerous structural, market, liquidity and credit risks, emphasizing that the product suits investors who are comfortable with equity-index downside risk, limited upside (coupons only), potential illiquidity, and dependence on BMO’s ability to pay.
La Bank of Montreal (BMO) offre 3,75 milioni di dollari USA in Senior Medium-Term Notes triennali, Serie K, strutturati come Autocallable Barrier Notes con Coupon Memory. Le obbligazioni sono collegate all'indice peggiore tra S&P 500, Russell 2000 e EURO STOXX 50. Gli investitori ricevono un coupon trimestrale condizionato del 2,3375 % (circa 9,35 % annuo) in ogni Data di Osservazione in cui il livello di chiusura di ciascun indice sia pari o superiore alla rispettiva Barriera del Coupon (70 % del Livello Iniziale). I coupon non pagati non si perdono: la funzione Memory consente di recuperare i coupon non corrisposti quando la barriera viene superata in una data successiva.
È prevista una riscossione automatica in qualsiasi Data di Osservazione trimestrale a partire dal 7 luglio 2026 se tutti e tre gli indici chiudono al 100 % o più dei loro Livelli Iniziali. In tal caso, i detentori ricevono il valore nominale più eventuali coupon maturati e l’obbligazione si estingue anticipatamente.
Il capitale è a rischio. Se l’obbligazione non viene richiamata e almeno un indice chiude sotto il 70 % del Livello Iniziale alla Data di Valutazione del 5 luglio 2028, gli investitori subiscono una perdita dell’1 % del capitale per ogni 1 % di calo dell’indice peggiore, con il rischio di perdere l’intero investimento. In caso contrario, il capitale viene restituito integralmente a scadenza.
Termini chiave: Livelli Iniziali—SPX 6.227,42; RTY 2.226,377; SX5E 5.318,72. I livelli di Coupon/Trigger/Barriera corrispondono al 70 % di ciascun Livello Iniziale. Prezzo di emissione pari al 100 % del valore nominale; valore iniziale stimato 97,683 %; commissione agente 0,60 %. Regolamento 8 luglio 2025; scadenza 10 luglio 2028. Le obbligazioni sono obbligazioni non garantite e non subordinate di BMO, soggette al rischio di credito dell’emittente, e non saranno quotate su alcun mercato.
Il supplemento informativo evidenzia numerosi rischi strutturali, di mercato, di liquidità e di credito, sottolineando che il prodotto è adatto a investitori che accettano il rischio di ribasso degli indici azionari, un potenziale guadagno limitato (solo coupon), possibili problemi di liquidità e la dipendenza dalla capacità di pagamento di BMO.
Bank of Montreal (BMO) ofrece 3,75 millones de dólares estadounidenses en Notas Senior Medium-Term a tres años, Serie K, estructuradas como Notas Autocancelables con Barreras y Cupones con Memoria. Las notas están vinculadas al índice con peor desempeño entre el S&P 500, Russell 2000 y EURO STOXX 50. Los inversores reciben un cupón trimestral contingente del 2,3375 % (≈ 9,35 % anual) en cualquier Fecha de Observación en la que el nivel de cierre de cada índice sea igual o superior a su respectiva Barrera de Cupón (70 % del Nivel Inicial). Los cupones omitidos no se pierden: la función de Memoria paga los cupones no pagados previamente una vez que se cumple la barrera en una fecha posterior.
La redención automática puede ocurrir en cualquier Fecha de Observación trimestral a partir del 7 de julio de 2026 si los tres índices cierran al 100 % o más de sus Niveles Iniciales. En ese caso, los tenedores reciben el valor nominal más los cupones adeudados y la nota termina anticipadamente.
El principal está en riesgo. Si la nota no es llamada y algún índice termina por debajo del 70 % de su Nivel Inicial en la Fecha de Valoración del 5 de julio de 2028, los inversores pierden un 1 % del principal por cada 1 % de descenso del índice con peor desempeño, pudiendo perder toda la inversión. De lo contrario, el principal se devuelve íntegramente al vencimiento.
Términos clave: Niveles Iniciales—SPX 6,227.42; RTY 2,226.377; SX5E 5,318.72. Los niveles de Cupón/Disparo/Barrera equivalen al 70 % de cada Nivel Inicial. Precio de emisión 100 % del valor nominal; valor inicial estimado 97,683 %; comisión del agente 0,60 %. Liquidación 8 de julio de 2025; vencimiento 10 de julio de 2028. Las notas son obligaciones no garantizadas y no subordinadas de BMO, sujetas a su riesgo crediticio, y no estarán listadas en ninguna bolsa.
El suplemento de precios destaca numerosos riesgos estructurales, de mercado, de liquidez y de crédito, enfatizando que el producto es adecuado para inversores que aceptan el riesgo a la baja de índices bursátiles, un potencial limitado de ganancias (solo cupones), posible iliquidez y la dependencia de la capacidad de pago de BMO.
뱅크 오브 몬트리올(BMO)은 3년 만기 시니어 미디엄-텀 노트 시리즈 K를 375만 달러 규모로 제공하며, 이는 메모리 쿠폰이 포함된 자동상환 배리어 노트로 구조화되어 있습니다. 이 노트는 S&P 500, 러셀 2000, EURO STOXX 50 지수 중 최저 성과 지수에 연동됩니다. 투자자는 각 관찰일에 모든 지수가 초기 수준의 70%인 쿠폰 배리어 이상일 경우 분기별 조건부 쿠폰 2.3375% (연 약 9.35%)를 받습니다. 미지급 쿠폰은 소멸되지 않고, 메모리 기능을 통해 이후 배리어 충족 시 미지급 쿠폰을 지급합니다.
자동 상환은 2026년 7월 7일부터 시작되는 분기별 관찰일에 세 지수 모두 초기 수준의 100% 이상으로 마감될 경우 발생할 수 있습니다. 이 경우 투자자는 원금과 미지급 쿠폰을 받고 조기 상환됩니다.
원금은 위험에 노출되어 있습니다. 노트가 조기 상환되지 않고 2028년 7월 5일 평가일에 어떤 지수라도 초기 수준의 70% 이하로 마감하면, 최저 성과 지수가 1% 하락할 때마다 원금의 1%를 잃게 되어 투자금 전액 손실 가능성도 있습니다. 그렇지 않으면 만기 시 원금 전액이 반환됩니다.
주요 조건: 초기 수준—SPX 6,227.42; RTY 2,226.377; SX5E 5,318.72. 쿠폰/트리거/배리어 수준은 각 초기 수준의 70%입니다. 발행가는 액면가의 100%; 예상 초기 가치는 97.683%; 중개 수수료는 0.60%. 결제일은 2025년 7월 8일; 만기일은 2028년 7월 10일입니다. 이 노트는 BMO의 무담보, 비후순위 채무이며, 신용 위험에 노출되어 있고 어느 거래소에도 상장되지 않습니다.
가격 보충 자료는 구조적, 시장, 유동성 및 신용 위험을 강조하며, 주식 지수 하락 위험, 제한된 상승 잠재력(쿠폰만), 잠재적 유동성 부족, 그리고 BMO의 지급 능력에 의존하는 투자자에게 적합한 상품임을 명시합니다.
La Bank of Montreal (BMO) propose 3,75 millions de dollars US de Senior Medium-Term Notes à trois ans, Série K, structurées sous forme d’Autocallable Barrier Notes avec Coupons à Mémoire. Les notes sont liées à l’indice le moins performant parmi le S&P 500, le Russell 2000 et l’EURO STOXX 50. Les investisseurs perçoivent un coupon trimestriel conditionnel de 2,3375 % (≈ 9,35 % par an) à chaque Date d’Observation où le niveau de clôture de chaque indice est supérieur ou égal à sa Barrière de Coupon respective (70 % du Niveau Initial). Les coupons non versés ne sont pas perdus : la fonction Mémoire permet de payer les coupons impayés dès que la barrière est atteinte ultérieurement.
Un rachat automatique peut intervenir à toute Date d’Observation trimestrielle à partir du 7 juillet 2026 si les trois indices clôturent à 100 % ou plus de leurs Niveaux Initiaux. Dans ce cas, les détenteurs reçoivent la valeur nominale plus les coupons dus et la note est remboursée par anticipation.
Le capital est à risque. Si la note n’est pas rappelée et qu’un indice termine en dessous de son Niveau de Déclenchement à 70 % à la Date d’Évaluation du 5 juillet 2028, les investisseurs perdent 1 % du capital pour chaque 1 % de baisse de l’indice le moins performant, pouvant entraîner une perte totale de l’investissement. Sinon, le capital est intégralement remboursé à l’échéance.
Termes clés : Niveaux Initiaux — SPX 6 227,42 ; RTY 2 226,377 ; SX5E 5 318,72. Les niveaux de Coupon/Déclencheur/Barrière sont égaux à 70 % de chaque Niveau Initial. Prix d’émission 100 % de la valeur nominale ; valeur initiale estimée 97,683 % ; commission de l’agent 0,60 %. Règlement le 8 juillet 2025 ; échéance le 10 juillet 2028. Les notes sont des obligations non garanties et non subordonnées de BMO, soumises à son risque de crédit, et ne seront pas cotées sur une quelconque bourse.
Le supplément de tarification met en avant de nombreux risques structurels, de marché, de liquidité et de crédit, soulignant que le produit convient aux investisseurs acceptant le risque de baisse des indices actions, un potentiel limité à la hausse (coupons uniquement), une possible illiquidité et la dépendance à la capacité de paiement de BMO.
Die Bank of Montreal (BMO) bietet Senior Medium-Term Notes der Serie K im Volumen von 3,75 Millionen US-Dollar mit dreijähriger Laufzeit an, strukturiert als Autocallable Barrier Notes mit Memory Coupons. Die Notes sind an den schwächsten der Indizes S&P 500, Russell 2000 und EURO STOXX 50 gekoppelt. Anleger erhalten an jedem Beobachtungstag einen bedingten Quartalscoupon von 2,3375 % (ca. 9,35 % p.a.), sofern der Schlusskurs jedes Index auf oder über seiner jeweiligen Coupon-Schwelle (70 % des Anfangsniveaus) liegt. Nicht gezahlte Coupons gehen nicht verloren: Die Memory-Funktion zahlt zuvor nicht ausgezahlte Coupons nach, sobald die Barriere an einem späteren Termin erreicht wird.
Eine automatische Rückzahlung kann an jedem quartalsweisen Beobachtungstag ab dem 7. Juli 2026 erfolgen, wenn alle drei Indizes auf oder über 100 % ihrer Anfangsniveaus schließen. In diesem Fall erhalten die Inhaber den Nennwert plus etwaige fällige Coupons, und die Note endet vorzeitig.
Das Kapital ist risikobehaftet. Wird die Note nicht zurückgerufen und schließt ein Index am Bewertungstag 5. Juli 2028 unter seiner 70 %-Trigger-Schwelle, verlieren Anleger 1 % des Kapitals für jeden 1 % Rückgang des schlechtesten Index, mit der Möglichkeit, das gesamte Investment zu verlieren. Andernfalls wird das Kapital bei Fälligkeit vollständig zurückgezahlt.
Wichtige Eckdaten: Anfangsniveaus—SPX 6.227,42; RTY 2.226,377; SX5E 5.318,72. Coupon-/Trigger-/Barrier-Level entsprechen 70 % der jeweiligen Anfangsniveaus. Ausgabepreis 100 % vom Nennwert; geschätzter Anfangswert 97,683 %; Agenturprovision 0,60 %. Abwicklung 8. Juli 2025; Fälligkeit 10. Juli 2028. Die Notes sind ungesicherte, nicht nachrangige Verbindlichkeiten von BMO, unterliegen deren Kreditrisiko und werden nicht an einer Börse notiert.
Das Pricing Supplement weist auf zahlreiche strukturelle, Markt-, Liquiditäts- und Kreditrisiken hin und betont, dass das Produkt für Anleger geeignet ist, die mit dem Abwärtsrisiko von Aktienindizes, begrenztem Aufwärtspotenzial (nur Coupons), möglicher Illiquidität und der Zahlungsfähigkeit von BMO vertraut sind.
- High contingent income: 2.3375 % per quarter (≈ 9.35 % p.a.) if barriers are met.
- Memory coupon feature can recoup previously missed coupons when conditions recover.
- 30 % downside buffer – principal is protected unless an index falls more than 30 % at final valuation.
- Automatic redemption may return capital early if markets perform well.
- No principal protection; losses mirror full downside of worst index below 70 % trigger, to zero.
- Worst-of structure – a single under-performing index cancels coupons and drives potential loss.
- Limited upside; investors forego all equity appreciation beyond periodic coupons.
- Liquidity risk; notes are unlisted and secondary bids depend solely on BMOCM.
- Credit exposure to BMO; payments rely on issuer solvency.
- Initial value discount; estimated at 97.683 % vs 100 % offer, implying embedded costs.
Insights
TL;DR High 9.35 % contingent coupon with 30 % downside buffer, but worst-of structure and no principal protection elevate risk.
The note offers aggressive income relative to conventional debt, driven by quarterly coupons tied to three major equity benchmarks. The 70 % barrier/trigger provides a moderate cushion, yet the worst-performer methodology means a single index breach suspends coupons and endangers capital. The estimated initial value at 97.683 % reflects a 230 bp structuring cost plus 60 bp sales concession, typical of retail structured notes. Automatic call from July 2026 may shorten duration, capping income but limiting tail risk. Liquidity is constrained because the note is not listed; secondary bids depend solely on BMOCM. Investors must accept full issuer credit exposure to BMO and the possibility of total loss in a severe equity downturn.
TL;DR Attractive headline yield for yield-seeking portfolios; risk-return profile hinges on staying above 70 % trigger.
From a portfolio construction view, the note can enhance cash-flow in a low-yield backdrop. The triple-index link gives geographic and size diversification, yet because payouts rely on all indices, diversification benefits are muted. The 30 % buffer is meaningful historically: since 2000, each reference index spent limited time below 70 % of current levels, but regime shifts could challenge that assumption. Upside participation is zero beyond coupons; thus, opportunity cost versus equity ownership is notable. Given the small notional (US$3.75 mm) this is a niche placement, suitable only as a satellite income play rather than a core holding.
La Bank of Montreal (BMO) offre 3,75 milioni di dollari USA in Senior Medium-Term Notes triennali, Serie K, strutturati come Autocallable Barrier Notes con Coupon Memory. Le obbligazioni sono collegate all'indice peggiore tra S&P 500, Russell 2000 e EURO STOXX 50. Gli investitori ricevono un coupon trimestrale condizionato del 2,3375 % (circa 9,35 % annuo) in ogni Data di Osservazione in cui il livello di chiusura di ciascun indice sia pari o superiore alla rispettiva Barriera del Coupon (70 % del Livello Iniziale). I coupon non pagati non si perdono: la funzione Memory consente di recuperare i coupon non corrisposti quando la barriera viene superata in una data successiva.
È prevista una riscossione automatica in qualsiasi Data di Osservazione trimestrale a partire dal 7 luglio 2026 se tutti e tre gli indici chiudono al 100 % o più dei loro Livelli Iniziali. In tal caso, i detentori ricevono il valore nominale più eventuali coupon maturati e l’obbligazione si estingue anticipatamente.
Il capitale è a rischio. Se l’obbligazione non viene richiamata e almeno un indice chiude sotto il 70 % del Livello Iniziale alla Data di Valutazione del 5 luglio 2028, gli investitori subiscono una perdita dell’1 % del capitale per ogni 1 % di calo dell’indice peggiore, con il rischio di perdere l’intero investimento. In caso contrario, il capitale viene restituito integralmente a scadenza.
Termini chiave: Livelli Iniziali—SPX 6.227,42; RTY 2.226,377; SX5E 5.318,72. I livelli di Coupon/Trigger/Barriera corrispondono al 70 % di ciascun Livello Iniziale. Prezzo di emissione pari al 100 % del valore nominale; valore iniziale stimato 97,683 %; commissione agente 0,60 %. Regolamento 8 luglio 2025; scadenza 10 luglio 2028. Le obbligazioni sono obbligazioni non garantite e non subordinate di BMO, soggette al rischio di credito dell’emittente, e non saranno quotate su alcun mercato.
Il supplemento informativo evidenzia numerosi rischi strutturali, di mercato, di liquidità e di credito, sottolineando che il prodotto è adatto a investitori che accettano il rischio di ribasso degli indici azionari, un potenziale guadagno limitato (solo coupon), possibili problemi di liquidità e la dipendenza dalla capacità di pagamento di BMO.
Bank of Montreal (BMO) ofrece 3,75 millones de dólares estadounidenses en Notas Senior Medium-Term a tres años, Serie K, estructuradas como Notas Autocancelables con Barreras y Cupones con Memoria. Las notas están vinculadas al índice con peor desempeño entre el S&P 500, Russell 2000 y EURO STOXX 50. Los inversores reciben un cupón trimestral contingente del 2,3375 % (≈ 9,35 % anual) en cualquier Fecha de Observación en la que el nivel de cierre de cada índice sea igual o superior a su respectiva Barrera de Cupón (70 % del Nivel Inicial). Los cupones omitidos no se pierden: la función de Memoria paga los cupones no pagados previamente una vez que se cumple la barrera en una fecha posterior.
La redención automática puede ocurrir en cualquier Fecha de Observación trimestral a partir del 7 de julio de 2026 si los tres índices cierran al 100 % o más de sus Niveles Iniciales. En ese caso, los tenedores reciben el valor nominal más los cupones adeudados y la nota termina anticipadamente.
El principal está en riesgo. Si la nota no es llamada y algún índice termina por debajo del 70 % de su Nivel Inicial en la Fecha de Valoración del 5 de julio de 2028, los inversores pierden un 1 % del principal por cada 1 % de descenso del índice con peor desempeño, pudiendo perder toda la inversión. De lo contrario, el principal se devuelve íntegramente al vencimiento.
Términos clave: Niveles Iniciales—SPX 6,227.42; RTY 2,226.377; SX5E 5,318.72. Los niveles de Cupón/Disparo/Barrera equivalen al 70 % de cada Nivel Inicial. Precio de emisión 100 % del valor nominal; valor inicial estimado 97,683 %; comisión del agente 0,60 %. Liquidación 8 de julio de 2025; vencimiento 10 de julio de 2028. Las notas son obligaciones no garantizadas y no subordinadas de BMO, sujetas a su riesgo crediticio, y no estarán listadas en ninguna bolsa.
El suplemento de precios destaca numerosos riesgos estructurales, de mercado, de liquidez y de crédito, enfatizando que el producto es adecuado para inversores que aceptan el riesgo a la baja de índices bursátiles, un potencial limitado de ganancias (solo cupones), posible iliquidez y la dependencia de la capacidad de pago de BMO.
뱅크 오브 몬트리올(BMO)은 3년 만기 시니어 미디엄-텀 노트 시리즈 K를 375만 달러 규모로 제공하며, 이는 메모리 쿠폰이 포함된 자동상환 배리어 노트로 구조화되어 있습니다. 이 노트는 S&P 500, 러셀 2000, EURO STOXX 50 지수 중 최저 성과 지수에 연동됩니다. 투자자는 각 관찰일에 모든 지수가 초기 수준의 70%인 쿠폰 배리어 이상일 경우 분기별 조건부 쿠폰 2.3375% (연 약 9.35%)를 받습니다. 미지급 쿠폰은 소멸되지 않고, 메모리 기능을 통해 이후 배리어 충족 시 미지급 쿠폰을 지급합니다.
자동 상환은 2026년 7월 7일부터 시작되는 분기별 관찰일에 세 지수 모두 초기 수준의 100% 이상으로 마감될 경우 발생할 수 있습니다. 이 경우 투자자는 원금과 미지급 쿠폰을 받고 조기 상환됩니다.
원금은 위험에 노출되어 있습니다. 노트가 조기 상환되지 않고 2028년 7월 5일 평가일에 어떤 지수라도 초기 수준의 70% 이하로 마감하면, 최저 성과 지수가 1% 하락할 때마다 원금의 1%를 잃게 되어 투자금 전액 손실 가능성도 있습니다. 그렇지 않으면 만기 시 원금 전액이 반환됩니다.
주요 조건: 초기 수준—SPX 6,227.42; RTY 2,226.377; SX5E 5,318.72. 쿠폰/트리거/배리어 수준은 각 초기 수준의 70%입니다. 발행가는 액면가의 100%; 예상 초기 가치는 97.683%; 중개 수수료는 0.60%. 결제일은 2025년 7월 8일; 만기일은 2028년 7월 10일입니다. 이 노트는 BMO의 무담보, 비후순위 채무이며, 신용 위험에 노출되어 있고 어느 거래소에도 상장되지 않습니다.
가격 보충 자료는 구조적, 시장, 유동성 및 신용 위험을 강조하며, 주식 지수 하락 위험, 제한된 상승 잠재력(쿠폰만), 잠재적 유동성 부족, 그리고 BMO의 지급 능력에 의존하는 투자자에게 적합한 상품임을 명시합니다.
La Bank of Montreal (BMO) propose 3,75 millions de dollars US de Senior Medium-Term Notes à trois ans, Série K, structurées sous forme d’Autocallable Barrier Notes avec Coupons à Mémoire. Les notes sont liées à l’indice le moins performant parmi le S&P 500, le Russell 2000 et l’EURO STOXX 50. Les investisseurs perçoivent un coupon trimestriel conditionnel de 2,3375 % (≈ 9,35 % par an) à chaque Date d’Observation où le niveau de clôture de chaque indice est supérieur ou égal à sa Barrière de Coupon respective (70 % du Niveau Initial). Les coupons non versés ne sont pas perdus : la fonction Mémoire permet de payer les coupons impayés dès que la barrière est atteinte ultérieurement.
Un rachat automatique peut intervenir à toute Date d’Observation trimestrielle à partir du 7 juillet 2026 si les trois indices clôturent à 100 % ou plus de leurs Niveaux Initiaux. Dans ce cas, les détenteurs reçoivent la valeur nominale plus les coupons dus et la note est remboursée par anticipation.
Le capital est à risque. Si la note n’est pas rappelée et qu’un indice termine en dessous de son Niveau de Déclenchement à 70 % à la Date d’Évaluation du 5 juillet 2028, les investisseurs perdent 1 % du capital pour chaque 1 % de baisse de l’indice le moins performant, pouvant entraîner une perte totale de l’investissement. Sinon, le capital est intégralement remboursé à l’échéance.
Termes clés : Niveaux Initiaux — SPX 6 227,42 ; RTY 2 226,377 ; SX5E 5 318,72. Les niveaux de Coupon/Déclencheur/Barrière sont égaux à 70 % de chaque Niveau Initial. Prix d’émission 100 % de la valeur nominale ; valeur initiale estimée 97,683 % ; commission de l’agent 0,60 %. Règlement le 8 juillet 2025 ; échéance le 10 juillet 2028. Les notes sont des obligations non garanties et non subordonnées de BMO, soumises à son risque de crédit, et ne seront pas cotées sur une quelconque bourse.
Le supplément de tarification met en avant de nombreux risques structurels, de marché, de liquidité et de crédit, soulignant que le produit convient aux investisseurs acceptant le risque de baisse des indices actions, un potentiel limité à la hausse (coupons uniquement), une possible illiquidité et la dépendance à la capacité de paiement de BMO.
Die Bank of Montreal (BMO) bietet Senior Medium-Term Notes der Serie K im Volumen von 3,75 Millionen US-Dollar mit dreijähriger Laufzeit an, strukturiert als Autocallable Barrier Notes mit Memory Coupons. Die Notes sind an den schwächsten der Indizes S&P 500, Russell 2000 und EURO STOXX 50 gekoppelt. Anleger erhalten an jedem Beobachtungstag einen bedingten Quartalscoupon von 2,3375 % (ca. 9,35 % p.a.), sofern der Schlusskurs jedes Index auf oder über seiner jeweiligen Coupon-Schwelle (70 % des Anfangsniveaus) liegt. Nicht gezahlte Coupons gehen nicht verloren: Die Memory-Funktion zahlt zuvor nicht ausgezahlte Coupons nach, sobald die Barriere an einem späteren Termin erreicht wird.
Eine automatische Rückzahlung kann an jedem quartalsweisen Beobachtungstag ab dem 7. Juli 2026 erfolgen, wenn alle drei Indizes auf oder über 100 % ihrer Anfangsniveaus schließen. In diesem Fall erhalten die Inhaber den Nennwert plus etwaige fällige Coupons, und die Note endet vorzeitig.
Das Kapital ist risikobehaftet. Wird die Note nicht zurückgerufen und schließt ein Index am Bewertungstag 5. Juli 2028 unter seiner 70 %-Trigger-Schwelle, verlieren Anleger 1 % des Kapitals für jeden 1 % Rückgang des schlechtesten Index, mit der Möglichkeit, das gesamte Investment zu verlieren. Andernfalls wird das Kapital bei Fälligkeit vollständig zurückgezahlt.
Wichtige Eckdaten: Anfangsniveaus—SPX 6.227,42; RTY 2.226,377; SX5E 5.318,72. Coupon-/Trigger-/Barrier-Level entsprechen 70 % der jeweiligen Anfangsniveaus. Ausgabepreis 100 % vom Nennwert; geschätzter Anfangswert 97,683 %; Agenturprovision 0,60 %. Abwicklung 8. Juli 2025; Fälligkeit 10. Juli 2028. Die Notes sind ungesicherte, nicht nachrangige Verbindlichkeiten von BMO, unterliegen deren Kreditrisiko und werden nicht an einer Börse notiert.
Das Pricing Supplement weist auf zahlreiche strukturelle, Markt-, Liquiditäts- und Kreditrisiken hin und betont, dass das Produkt für Anleger geeignet ist, die mit dem Abwärtsrisiko von Aktienindizes, begrenztem Aufwärtspotenzial (nur Coupons), möglicher Illiquidität und der Zahlungsfähigkeit von BMO vertraut sind.
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ISSUER FREE WRITING PROSPECTUS |
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Filed Pursuant to Rule 433 |
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Registration Statement No. 333-282565 |
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Dated July 9, 2025 |
Contingent Income Auto-Callable Securities due on or about July 16, 2026
Based on the Performance of the Common Stock of Amazon.com, Inc.
Principal at Risk Securities
This document provides a summary of the terms of the Contingent Income Auto-Callable Securities (the “securities”). Investors should carefully review the accompanying preliminary pricing supplement for the securities, the accompanying product supplement, the prospectus supplement and the prospectus, as well as the “Risk Considerations” section below, before making an investment decision.
The securities do not guarantee any return of principal at maturity. Investors will not participate in any appreciation of the underlying stock and must be willing to accept the risk of not receiving any contingent quarterly coupons over the term of the securities. The securities are senior unsecured debt securities issued by The Bank of Nova Scotia (“BNS”), and all payments on the securities are subject to the credit risk of BNS. As used in this document, “we,” “us,” or “our” refers to BNS.
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SUMMARY TERMS |
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Issuer: |
The Bank of Nova Scotia |
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Issue: |
Senior Note Program, Series A |
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Underlying stock: |
Common stock of Amazon.com, Inc. (Bloomberg Ticker: “AMZN UW”) |
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Stated principal amount: |
$1,000.00 per security |
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Minimum investment: |
$1,000 (1 security) |
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Pricing date: |
July 11, 2025 |
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Original issue date: |
July 16, 2025 (3 business days after the pricing date; see preliminary pricing supplement). |
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Final determination date: |
July 13, 2026, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Maturity date: |
July 16, 2026, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Early redemption: |
If the closing price of the underlying stock on any determination date other than the final determination date is greater than or equal to the call threshold price, the securities will be automatically redeemed for an amount per security equal to the early redemption payment on the first contingent coupon payment date immediately following the related determination date. No further payments will be made on the securities once they have been redeemed. |
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Early redemption payment: |
The early redemption payment will be an amount equal to (i) the stated principal amount plus (ii) the contingent quarterly coupon with respect to the applicable determination date and any previously unpaid contingent quarterly coupons with respect to any previous determination dates pursuant to the memory coupon feature. |
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Contingent quarterly coupon: |
▪If the closing price on any determination date is greater than or equal to the downside threshold price, we will pay on the related contingent coupon payment date a contingent quarterly coupon of $28.70 (equivalent to 11.48% per annum of the stated principal amount) per security, plus any previously unpaid contingent quarterly coupons with respect to any previous determination dates pursuant to the memory coupon feature. ▪If the closing price on any determination date is less than the downside threshold price, we will not pay a contingent quarterly coupon on the related contingent coupon payment date. |
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Memory coupon feature: |
If a contingent quarterly coupon is not paid on a contingent coupon payment date (other than the maturity date) because the closing price of the underlying stock on the related determination date is less than the downside threshold price, such contingent quarterly coupon will be paid on a later contingent coupon payment date if the closing price of the underlying stock on the determination date corresponding to such later contingent coupon payment date is greater than or equal to the downside threshold price. For the avoidance of doubt, once a previously unpaid contingent quarterly coupon has been paid on a later contingent coupon payment date, it will not be made again on any subsequent contingent coupon payment date. If the closing price of the underlying stock on each of the determination dates is less than the downside threshold price, you will receive no contingent quarterly coupons during the term of, and will not receive a positive return on, the securities. |
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Determination dates: |
Quarterly (as set forth on the cover of the preliminary pricing supplement), subject to postponement for non-trading days and certain market disruption events as described in the accompanying product supplement. |
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Contingent coupon payment dates: |
Quarterly (as set forth on the cover of the preliminary pricing supplement), subject to postponement for non-business days and certain market disruption events as described in the accompanying product supplement. |
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Payment at maturity: |
▪If the final share price is greater than or equal to the downside threshold price: (i) the stated principal amount plus (ii) the contingent quarterly coupon with respect to the final determination date and any previously unpaid contingent quarterly coupons with respect to any previous determination dates pursuant to the memory coupon feature ▪If the final share price is less than the downside threshold price: a number of shares of the underlying stock equal to the exchange ratio, and the cash value of any fractional share included in the exchange ratio (such cash value being equal to (i) the fractional share amount times (ii) the final share price) If the final share price is less than the downside threshold price, you will receive per security a number of shares of the underlying stock equal to the exchange ratio (and the cash value of any fractional share), the value of which is expected to be worth significantly less than the stated principal amount and could be as low as zero, resulting in the loss of your entire investment in the securities. If the exchange ratio is less than 1, your payment at maturity for each security will be the cash value of the fractional share. |
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Exchange ratio: |
The number of shares of the underlying stock per security equal to the quotient of the stated principal amount divided by the initial share price, observed to 4 decimal places. We will pay the cash value of any fractional share in an amount equal to the product of that fraction multiplied by the final share price, each as determined by the calculation agent. The exchange ratio may be adjusted in the case of certain adjustment events as described in the accompanying product supplement. |
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Cash value: |
An amount in cash per security equal to the product of the exchange ratio multiplied by the final share price. For the avoidance of doubt, we will pay the cash value if the exchange ratio is less than 1.0000. |
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Call threshold price: |
100.00% of the initial share price, as may be adjusted in the case of certain adjustment events as described in the accompanying product supplement |
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Downside threshold price: |
75.00% of the initial share price, as may be adjusted in the case of certain adjustment events as described in the accompanying product supplement |
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Initial share price: |
The closing price of the underlying stock on the pricing date, as may be adjusted in the case of certain adjustment events as described in the accompanying product supplement. |
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Final share price: |
The closing price of the underlying stock on the final determination date, as may be adjusted in the case of certain adjustment events as described in the accompanying product supplement |
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CUSIP / ISIN: |
06419DAR4 / US06419DAR44 |
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Listing: |
The securities will not be listed or displayed on any securities exchange or any electronic communications network. |
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Commission: |
$17.50 per stated principal amount. |
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Estimated value on the pricing date: |
Expected to be between $946.54 and $976.54 per security. See “Risk Factors” in the preliminary pricing supplement. |
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Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/9631/000183988225037943/bns_424b2-20584.htm |
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HYPOTHETICAL PAYOUT |
The below figures are based on a hypothetical downside threshold price of 75.00% of a hypothetical initial share price and are purely hypothetical (the actual terms of your securities will be determined on the pricing date and will be specified in the final pricing supplement).
Hypothetical Payment at Maturity if No Early Redemption Occurs
| Change in Underlying Stock | Payment at Maturity (excluding any contingent quarterly coupon payable at maturity) |
| +50.00% | $1,000.00 |
| +40.00% | $1,000.00 |
| +30.00% | $1,000.00 |
| +20.00% | $1,000.00 |
| +10.00% | $1,000.00 |
| 0.00% | $1,000.00 |
| -10.00% | $1,000.00 |
| -20.00% | $1,000.00 |
| -25.00% | $1,000.00 |
| -26.00% | $740.00 |
| -30.00% | $700.00 |
| -40.00% | $600.00 |
| -50.00% | $500.00 |
| -60.00% | $400.00 |
| -70.00% | $300.00 |
| -80.00% | $200.00 |
| -90.00% | $100.00 |
| -100.00% | $0.00 |
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You will find a link to the accompanying preliminary pricing supplement for the securities above and links to the accompanying product supplement and accompanying prospectus for the securities under “Additional Information About BNS and the Securities” in the preliminary pricing supplement, which you should read and understand prior to investing in the securities.
The issuer has filed a registration statement (including a prospectus as supplemented by a prospectus supplement, product supplement and the preliminary pricing supplement) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the accompanying prospectus in that registration statement and the other documents the issuer has filed with the SEC, including the accompanying preliminary pricing supplement and the accompanying prospectus supplement and product supplement, for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling (212) 225-5678. Our Central Index Key, or CIK, on the SEC web site is 0000009631.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to Return Characteristics
▪Risk of significant loss at maturity.
▪Contingent repayment of stated principal amount only at maturity.
▪You may not receive any contingent quarterly coupons.
▪Greater expected volatility with respect to the underlying stock generally reflects a higher contingent quarterly coupon and a higher expectation as of the pricing date that the final share price of the underlying stock could be less than the downside threshold price on the final determination date.
▪The securities are subject to reinvestment risk in the event of an early redemption.
▪The contingent quarterly coupon, if any, is based solely on the closing price or the final share price, as applicable.
▪Your potential return on the securities is limited, you will not participate in any appreciation of the underlying stock and you will not realize a return beyond the returns represented by the contingent quarterly coupons received, if any, during the term of the securities.
Risks Relating to Characteristics of the Underlying Stock
▪The securities are subject to risks associated with investments in single equity securities.
▪There can be no assurance that the investment view implicit in the securities will be successful.
▪There is no affiliation between BNS and the underlying stock issuer.
Risks Relating to Estimated Value and Liquidity
▪BNS’ initial estimated value of the securities at the time of pricing (when the terms of your securities are set on the pricing date) will be lower than the issue price of the securities.
▪Neither BNS’ nor SCUSA’s estimated value of the securities at any time is determined by reference to credit spreads or the borrowing rate BNS would pay for its conventional fixed-rate debt securities.
▪BNS’ initial estimated value of the securities does not represent future values of the securities and may differ from others’ (including SCUSA’s) estimates.
▪The securities have limited liquidity.
▪The price at which SCUSA would buy or sell your securities (if SCUSA makes a market, which it is not obligated to do) will be based on SCUSA’s estimated value of your securities.
▪The price of the securities prior to maturity will depend on a number of factors and may be substantially less than the stated principal amount.
Risks Relating to General Credit Characteristics
▪Payments on the securities are subject to the credit risk of BNS.
Risks Relating to Hedging Activities and Conflicts of Interest
▪Hedging activities by BNS and SCUSA may negatively impact investors in the securities and cause our respective interests and those of our clients and counterparties to be contrary to those of investors in the securities.
▪The calculation agent can make antidilution and other adjustments that may adversely affect the market value of, and any amounts payable on, the securities.
▪We, SCUSA and our other affiliates regularly provide services to, or otherwise have business relationships with, a broad client base, which has included and may include us and the underlying stock issuer and the market activities by us, SCUSA or our other affiliates for our or their own respective accounts or for our clients could negatively impact investors in the securities.
▪Activities conducted by BNS and its affiliates may impact the market price of the underlying stock and the value of the securities.
▪The calculation agent will have significant discretion with respect to the securities, which may be exercised in a manner that is adverse to your interests.
▪BNS and its affiliates may publish research or make opinions or recommendations that are inconsistent with an investment in the securities.
Risks Relating to Canadian and U.S. Federal Income Taxation
▪Uncertain tax treatment. Significant aspects of the tax treatment of the securities are uncertain. You should consult your tax advisor about your tax situation. See “Additional Information About the Securities — Tax Considerations” and “— Material Canadian Income Tax Consequences” in the preliminary pricing supplement.
Underlying Stock
For information about the underlying stock, including historical performance information, see “Information About the Underlying Stock” in the preliminary pricing supplement.
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FAQ
What coupon rate do the BMO Autocallable Barrier Notes pay?
When can the notes be automatically called?
How much downside protection is provided?
What happens if a Trigger Event occurs at maturity?
Are the notes listed on an exchange?
What is the issuer’s estimated initial value versus the offer price?
