[FWP] Bank of Nova Scotia Free Writing Prospectus
The Bank of Nova Scotia (BNS) is offering Contingent Income Auto-Callable Securities linked to the common stock of The Home Depot, Inc. (HD). The $1,000-denominated senior unsecured notes can be automatically redeemed quarterly if HD closes at or above the 100% call threshold; in that event, holders receive par plus the current coupon and no further payments.
The notes pay a contingent quarterly coupon of $25 (10.00% p.a.) only when HD’s closing price on the relevant determination date is at or above the 80% downside threshold. Missed coupons are not recaptured. If the notes are not called, final principal repayment depends on HD’s performance on 11 July 2028:
- ≥ 80% of initial price: return of par plus final coupon.
- < 80%: repayment is par × (HD final price ÷ initial price), exposing investors to up to a 100% loss.
The securities are expected to price on 11 July 2025, settle on 16 July 2025, and mature (if not previously redeemed) on 14 July 2028. Estimated issue value is $938.90–$968.90, reflecting selling concession and hedging costs. The notes will not be listed, and secondary market liquidity, if any, will be limited. All payments are subject to BNS’s credit risk.
La Bank of Nova Scotia (BNS) offre titoli Contingent Income Auto-Callable legati alle azioni ordinarie di The Home Depot, Inc. (HD). Le obbligazioni senior non garantite denominate $1.000 possono essere rimborsate automaticamente ogni trimestre se HD chiude al di sopra o uguale alla soglia di richiamo del 100%; in tal caso, i detentori ricevono il valore nominale più la cedola corrente e non sono previsti ulteriori pagamenti.
Le obbligazioni pagano una cedola trimestrale condizionata di $25 (10,00% annuo) solo se il prezzo di chiusura di HD alla data di determinazione rilevante è pari o superiore alla soglia di ribasso dell'80%. Le cedole non corrisposte non vengono recuperate. Se le obbligazioni non vengono richiamate, il rimborso finale del capitale dipende dalla performance di HD l'11 luglio 2028:
- ≥ 80% del prezzo iniziale: restituzione del valore nominale più la cedola finale.
- < 80%: il rimborso è valore nominale × (prezzo finale HD ÷ prezzo iniziale), esponendo gli investitori a una perdita fino al 100%.
I titoli dovrebbero essere emessi l'11 luglio 2025, con regolamento il 16 luglio 2025 e scadenza (se non richiamati prima) il 14 luglio 2028. Il valore stimato di emissione è tra $938,90 e $968,90, riflettendo commissioni di vendita e costi di copertura. Le obbligazioni non saranno quotate e la liquidità nel mercato secondario, se presente, sarà limitata. Tutti i pagamenti sono soggetti al rischio di credito di BNS.
El Bank of Nova Scotia (BNS) ofrece valores Contingent Income Auto-Callable vinculados a las acciones ordinarias de The Home Depot, Inc. (HD). Los bonos senior no garantizados denominados en $1,000 pueden ser redimidos automáticamente cada trimestre si HD cierra en o por encima del umbral de llamada del 100%; en ese caso, los tenedores reciben el valor nominal más el cupón actual y no se realizan pagos adicionales.
Los bonos pagan un cupón trimestral contingente de $25 (10,00% anual) solo cuando el precio de cierre de HD en la fecha de determinación relevante está en o por encima del umbral de caída del 80%. Los cupones no pagados no se recuperan. Si los bonos no son llamados, el reembolso final del principal depende del desempeño de HD el 11 de julio de 2028:
- ≥ 80% del precio inicial: devolución del valor nominal más el cupón final.
- < 80%: el reembolso es valor nominal × (precio final HD ÷ precio inicial), exponiendo a los inversores a una pérdida de hasta el 100%.
Se espera que los valores se emitan el 11 de julio de 2025, se liquiden el 16 de julio de 2025 y venzan (si no se redimen antes) el 14 de julio de 2028. El valor estimado de emisión es de $938.90 a $968.90, reflejando la comisión de venta y los costos de cobertura. Los bonos no estarán listados y la liquidez en el mercado secundario, si existe, será limitada. Todos los pagos están sujetos al riesgo crediticio de BNS.
노바스코샤 은행(BNS)은 The Home Depot, Inc.(HD)의 보통주에 연계된 Contingent Income Auto-Callable 증권을 제공합니다. $1,000 단위의 선순위 무담보 채권은 HD가 100% 콜 임계값 이상으로 마감할 경우 분기별로 자동 상환될 수 있으며, 이 경우 투자자는 원금과 현재 쿠폰을 받고 추가 지급은 없습니다.
이 채권은 HD의 해당 결정일 종가가 80% 하락 임계값 이상일 때만 분기별 조건부 쿠폰 $25 (연 10.00%)를 지급합니다. 미지급 쿠폰은 회수되지 않습니다. 채권이 콜되지 않을 경우, 2028년 7월 11일 HD의 성과에 따라 최종 원금 상환이 결정됩니다:
- 초기 가격의 80% 이상: 원금과 최종 쿠폰 지급.
- 80% 미만: 상환금은 원금 × (HD 최종 가격 ÷ 초기 가격)으로, 투자자는 최대 100% 손실 위험에 노출됩니다.
증권은 2025년 7월 11일 가격 결정, 7월 16일 결제, 2028년 7월 14일 만기(이전 상환 없을 경우)를 예정하고 있습니다. 예상 발행가는 $938.90~$968.90로 판매 수수료 및 헤지 비용을 반영합니다. 이 채권은 상장되지 않으며 2차 시장 유동성은 제한적일 수 있습니다. 모든 지급은 BNS의 신용 위험에 따릅니다.
La Banque de Nouvelle-Écosse (BNS) propose des titres Contingent Income Auto-Callable liés aux actions ordinaires de The Home Depot, Inc. (HD). Les billets seniors non garantis d'une valeur nominale de 1 000 $ peuvent être remboursés automatiquement chaque trimestre si HD clôture à ou au-dessus du seuil de rappel de 100% ; dans ce cas, les détenteurs reçoivent le pair plus le coupon courant et aucun paiement supplémentaire n'est effectué.
Les billets versent un coupon trimestriel conditionnel de 25 $ (10,00 % par an) uniquement lorsque le cours de clôture de HD à la date de détermination pertinente est égal ou supérieur au seuil de baisse de 80%. Les coupons manqués ne sont pas récupérés. Si les billets ne sont pas rappelés, le remboursement final du principal dépend de la performance de HD le 11 juillet 2028 :
- ≥ 80 % du prix initial : remboursement du pair plus le coupon final.
- < 80 % : le remboursement est pair × (cours final HD ÷ prix initial), exposant les investisseurs à une perte pouvant aller jusqu'à 100 %.
Les titres devraient être émis le 11 juillet 2025, réglés le 16 juillet 2025 et arriver à maturité (s'ils ne sont pas rappelés auparavant) le 14 juillet 2028. La valeur estimée d'émission est comprise entre 938,90 $ et 968,90 $, reflétant la commission de vente et les coûts de couverture. Les billets ne seront pas cotés et la liquidité sur le marché secondaire, si elle existe, sera limitée. Tous les paiements sont soumis au risque de crédit de BNS.
Die Bank of Nova Scotia (BNS) bietet Contingent Income Auto-Callable Wertpapiere an, die an die Stammaktien von The Home Depot, Inc. (HD) gekoppelt sind. Die unbesicherten Senior-Anleihen mit einem Nennwert von 1.000 USD können vierteljährlich automatisch zurückgezahlt werden, wenn HD am Bewertungstag auf oder über der 100%-Call-Schwelle schließt; in diesem Fall erhalten die Inhaber den Nennwert plus den aktuellen Kupon und keine weiteren Zahlungen.
Die Anleihen zahlen einen bedingten vierteljährlichen Kupon von 25 USD (10,00% p.a.) nur, wenn der Schlusskurs von HD am entsprechenden Stichtag auf oder über der 80%-Abschwungschwelle liegt. Verpasste Kupons werden nicht nachgezahlt. Wenn die Anleihen nicht zurückgerufen werden, hängt die endgültige Rückzahlung des Kapitals von der Entwicklung von HD am 11. Juli 2028 ab:
- ≥ 80% des Anfangspreises: Rückzahlung des Nennwerts plus finaler Kupon.
- < 80%: Rückzahlung erfolgt zu Nennwert × (HD Schlusskurs ÷ Anfangskurs), wodurch Anleger einem Verlust von bis zu 100% ausgesetzt sind.
Die Wertpapiere sollen am 11. Juli 2025 bepreist, am 16. Juli 2025 abgewickelt und am 14. Juli 2028 fällig (sofern nicht vorher zurückgezahlt) werden. Der geschätzte Ausgabepreis liegt zwischen 938,90 und 968,90 USD, was Verkaufsprovisionen und Absicherungskosten widerspiegelt. Die Anleihen werden nicht börsennotiert sein, und die Liquidität am Sekundärmarkt wird, falls vorhanden, begrenzt sein. Alle Zahlungen unterliegen dem Kreditrisiko von BNS.
- 10% contingent annual coupon provides high current income relative to traditional fixed-income instruments.
- Automatic call feature can return capital early with coupon if Home Depot stock remains flat or appreciates.
- Principal is at full risk below the 80% downside threshold, potentially resulting in total loss at maturity.
- No participation in upside; maximum return is limited to received coupons.
- Payments depend on BNS creditworthiness, adding issuer credit risk.
- Limited liquidity: securities are unlisted and secondary market making is not obligated.
- Estimated issue value 3–6% below par implies an initial economic drag for investors.
Insights
TL;DR – Callable 10% coupon note offers yield but caps upside and puts principal at risk below 80% of HD’s initial price.
The security is a typical income-focused, yield-enhanced note. Investors receive an attractive 10% annual coupon, yet payments are contingent and could cease for prolonged periods if Home Depot trades below the 80% threshold. Early redemption is likely in stable or rising markets, producing reinvestment risk. Downside participation below the threshold is linear, so a 30% drop in HD results in a 30% principal loss. Because the product is senior unsecured, default risk of BNS must be considered, although the issuer is investment-grade. The estimated value (94–97% of par) indicates a 3–6% initial cost to investors. Overall, risk/return is balanced, rendering the note appropriate only for investors with a moderately bullish to neutral short-term view on HD and tolerance for capital loss.
La Bank of Nova Scotia (BNS) offre titoli Contingent Income Auto-Callable legati alle azioni ordinarie di The Home Depot, Inc. (HD). Le obbligazioni senior non garantite denominate $1.000 possono essere rimborsate automaticamente ogni trimestre se HD chiude al di sopra o uguale alla soglia di richiamo del 100%; in tal caso, i detentori ricevono il valore nominale più la cedola corrente e non sono previsti ulteriori pagamenti.
Le obbligazioni pagano una cedola trimestrale condizionata di $25 (10,00% annuo) solo se il prezzo di chiusura di HD alla data di determinazione rilevante è pari o superiore alla soglia di ribasso dell'80%. Le cedole non corrisposte non vengono recuperate. Se le obbligazioni non vengono richiamate, il rimborso finale del capitale dipende dalla performance di HD l'11 luglio 2028:
- ≥ 80% del prezzo iniziale: restituzione del valore nominale più la cedola finale.
- < 80%: il rimborso è valore nominale × (prezzo finale HD ÷ prezzo iniziale), esponendo gli investitori a una perdita fino al 100%.
I titoli dovrebbero essere emessi l'11 luglio 2025, con regolamento il 16 luglio 2025 e scadenza (se non richiamati prima) il 14 luglio 2028. Il valore stimato di emissione è tra $938,90 e $968,90, riflettendo commissioni di vendita e costi di copertura. Le obbligazioni non saranno quotate e la liquidità nel mercato secondario, se presente, sarà limitata. Tutti i pagamenti sono soggetti al rischio di credito di BNS.
El Bank of Nova Scotia (BNS) ofrece valores Contingent Income Auto-Callable vinculados a las acciones ordinarias de The Home Depot, Inc. (HD). Los bonos senior no garantizados denominados en $1,000 pueden ser redimidos automáticamente cada trimestre si HD cierra en o por encima del umbral de llamada del 100%; en ese caso, los tenedores reciben el valor nominal más el cupón actual y no se realizan pagos adicionales.
Los bonos pagan un cupón trimestral contingente de $25 (10,00% anual) solo cuando el precio de cierre de HD en la fecha de determinación relevante está en o por encima del umbral de caída del 80%. Los cupones no pagados no se recuperan. Si los bonos no son llamados, el reembolso final del principal depende del desempeño de HD el 11 de julio de 2028:
- ≥ 80% del precio inicial: devolución del valor nominal más el cupón final.
- < 80%: el reembolso es valor nominal × (precio final HD ÷ precio inicial), exponiendo a los inversores a una pérdida de hasta el 100%.
Se espera que los valores se emitan el 11 de julio de 2025, se liquiden el 16 de julio de 2025 y venzan (si no se redimen antes) el 14 de julio de 2028. El valor estimado de emisión es de $938.90 a $968.90, reflejando la comisión de venta y los costos de cobertura. Los bonos no estarán listados y la liquidez en el mercado secundario, si existe, será limitada. Todos los pagos están sujetos al riesgo crediticio de BNS.
노바스코샤 은행(BNS)은 The Home Depot, Inc.(HD)의 보통주에 연계된 Contingent Income Auto-Callable 증권을 제공합니다. $1,000 단위의 선순위 무담보 채권은 HD가 100% 콜 임계값 이상으로 마감할 경우 분기별로 자동 상환될 수 있으며, 이 경우 투자자는 원금과 현재 쿠폰을 받고 추가 지급은 없습니다.
이 채권은 HD의 해당 결정일 종가가 80% 하락 임계값 이상일 때만 분기별 조건부 쿠폰 $25 (연 10.00%)를 지급합니다. 미지급 쿠폰은 회수되지 않습니다. 채권이 콜되지 않을 경우, 2028년 7월 11일 HD의 성과에 따라 최종 원금 상환이 결정됩니다:
- 초기 가격의 80% 이상: 원금과 최종 쿠폰 지급.
- 80% 미만: 상환금은 원금 × (HD 최종 가격 ÷ 초기 가격)으로, 투자자는 최대 100% 손실 위험에 노출됩니다.
증권은 2025년 7월 11일 가격 결정, 7월 16일 결제, 2028년 7월 14일 만기(이전 상환 없을 경우)를 예정하고 있습니다. 예상 발행가는 $938.90~$968.90로 판매 수수료 및 헤지 비용을 반영합니다. 이 채권은 상장되지 않으며 2차 시장 유동성은 제한적일 수 있습니다. 모든 지급은 BNS의 신용 위험에 따릅니다.
La Banque de Nouvelle-Écosse (BNS) propose des titres Contingent Income Auto-Callable liés aux actions ordinaires de The Home Depot, Inc. (HD). Les billets seniors non garantis d'une valeur nominale de 1 000 $ peuvent être remboursés automatiquement chaque trimestre si HD clôture à ou au-dessus du seuil de rappel de 100% ; dans ce cas, les détenteurs reçoivent le pair plus le coupon courant et aucun paiement supplémentaire n'est effectué.
Les billets versent un coupon trimestriel conditionnel de 25 $ (10,00 % par an) uniquement lorsque le cours de clôture de HD à la date de détermination pertinente est égal ou supérieur au seuil de baisse de 80%. Les coupons manqués ne sont pas récupérés. Si les billets ne sont pas rappelés, le remboursement final du principal dépend de la performance de HD le 11 juillet 2028 :
- ≥ 80 % du prix initial : remboursement du pair plus le coupon final.
- < 80 % : le remboursement est pair × (cours final HD ÷ prix initial), exposant les investisseurs à une perte pouvant aller jusqu'à 100 %.
Les titres devraient être émis le 11 juillet 2025, réglés le 16 juillet 2025 et arriver à maturité (s'ils ne sont pas rappelés auparavant) le 14 juillet 2028. La valeur estimée d'émission est comprise entre 938,90 $ et 968,90 $, reflétant la commission de vente et les coûts de couverture. Les billets ne seront pas cotés et la liquidité sur le marché secondaire, si elle existe, sera limitée. Tous les paiements sont soumis au risque de crédit de BNS.
Die Bank of Nova Scotia (BNS) bietet Contingent Income Auto-Callable Wertpapiere an, die an die Stammaktien von The Home Depot, Inc. (HD) gekoppelt sind. Die unbesicherten Senior-Anleihen mit einem Nennwert von 1.000 USD können vierteljährlich automatisch zurückgezahlt werden, wenn HD am Bewertungstag auf oder über der 100%-Call-Schwelle schließt; in diesem Fall erhalten die Inhaber den Nennwert plus den aktuellen Kupon und keine weiteren Zahlungen.
Die Anleihen zahlen einen bedingten vierteljährlichen Kupon von 25 USD (10,00% p.a.) nur, wenn der Schlusskurs von HD am entsprechenden Stichtag auf oder über der 80%-Abschwungschwelle liegt. Verpasste Kupons werden nicht nachgezahlt. Wenn die Anleihen nicht zurückgerufen werden, hängt die endgültige Rückzahlung des Kapitals von der Entwicklung von HD am 11. Juli 2028 ab:
- ≥ 80% des Anfangspreises: Rückzahlung des Nennwerts plus finaler Kupon.
- < 80%: Rückzahlung erfolgt zu Nennwert × (HD Schlusskurs ÷ Anfangskurs), wodurch Anleger einem Verlust von bis zu 100% ausgesetzt sind.
Die Wertpapiere sollen am 11. Juli 2025 bepreist, am 16. Juli 2025 abgewickelt und am 14. Juli 2028 fällig (sofern nicht vorher zurückgezahlt) werden. Der geschätzte Ausgabepreis liegt zwischen 938,90 und 968,90 USD, was Verkaufsprovisionen und Absicherungskosten widerspiegelt. Die Anleihen werden nicht börsennotiert sein, und die Liquidität am Sekundärmarkt wird, falls vorhanden, begrenzt sein. Alle Zahlungen unterliegen dem Kreditrisiko von BNS.
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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 2, 2025 |
Contingent Income Auto-Callable Securities due on or about July 14, 2028
Based on the Performance of the Common Stock of The Home Depot, 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 The Home Depot, Inc. (Bloomberg Ticker: “HD UN”) |
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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 11, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Maturity date: |
July 14, 2028, 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. |
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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 a contingent quarterly coupon of $25.00 (equivalent to 10.00% per annum of the stated principal amount) per security on the related contingent coupon payment date. ▪If the closing price on any determination date is less than the downside threshold price, we will not pay a contingent quarterly coupon with respect to that determination date. |
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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 ▪If the final share price is less than the downside threshold price: (i) the stated principal amount multiplied by (ii) the share performance factor If the final share price is less than the downside threshold price, the payment at maturity will be less than 80.00% of the stated principal amount and could be as low as zero. |
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Share performance factor: |
Final share price divided by the initial share price |
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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: |
80.00% 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: |
06419DAH6 / US06419DAH61 |
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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: |
$22.50 per stated principal amount. |
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Estimated value on the pricing date: |
Expected to be between $938.90 and $968.90 per security. See “Risk Factors” in the preliminary pricing supplement. |
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Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/9631/000183988225036751/bns_424b3-20079.htm |
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HYPOTHETICAL PAYOUT |
The below figures are based on a hypothetical downside threshold price of 80.00% 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
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Change in Underlying Stock |
Payment at Maturity (excluding any contingent quarterly coupon payable at maturity) |
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+50.00% |
$1,000.00 |
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+40.00% |
$1,000.00 |
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+30.00% |
$1,000.00 |
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+20.00% |
$1,000.00 |
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+10.00% |
$1,000.00 |
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0.00% |
$1,000.00 |
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-10.00% |
$1,000.00 |
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-20.00% |
$1,000.00 |
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-21.00% |
$790.00 |
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-30.00% |
$700.00 |
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-40.00% |
$600.00 |
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-50.00% |
$500.00 |
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-60.00% |
$400.00 |
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-70.00% |
$300.00 |
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-80.00% |
$200.00 |
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-90.00% |
$100.00 |
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-100.00% |
$0.00 |
A-1
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 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 is the coupon rate on BNS Contingent Income Auto-Callable Securities?
When can the BNS securities be called early?
How much principal could I lose at maturity?
Are the BNS notes listed on an exchange?
What is the estimated value compared with the $1,000 issue price?
What role does BNS credit risk play?
