[FWP] Bank of Nova Scotia Free Writing Prospectus
Royal Bank of Canada (RY) is issuing $339,000 of senior unsecured Capped Return Notes linked to the S&P 500 Index, maturing 2 January 2030. The notes offer 100% participation in any index appreciation up to a Maximum Return of 41% (maximum redemption value of $1,410 per $1,000 principal). If the index finishes flat or lower on the 27 December 2029 valuation date, investors receive only their principal back. The structure therefore provides principal preservation at maturity but no downside participation, and upside is strictly capped.
Key commercial terms
- Issue price: 100% of principal; minimum investment $1,000.
- Participation rate: 100% (subject to the 41% cap).
- No periodic coupons; notes are non-interest-bearing.
- Initial estimated value: $986.09 per $1,000, below the public offering price because of structuring fee, internal funding rate and hedging costs.
- No underwriting commission to RBC Capital Markets, LLC (RBCCM); unaffiliated brokers may receive up to $8 per $1,000 as a structuring fee.
- Not exchange-listed; secondary liquidity, if any, will depend on RBCCM as market-maker.
- Credit exposure: senior unsecured obligation of Royal Bank of Canada; payments depend on issuer solvency.
- Tax: expected to be treated as contingent payment debt instruments (CPDI), requiring annual accrual of imputed interest for U.S. holders.
Illustrative performance: A 30% index gain would return $1,300 (30%), while any gain ≥41% is limited to $1,410 (41%). Any negative index return still redeems at par. Historical index data from 2015-2025 is provided only for context and not as a predictor.
Principal risks highlighted by the issuer include (i) capped upside relative to a direct equity investment, (ii) lack of interest payments and potential opportunity cost, (iii) issuer credit risk, (iv) illiquidity and potentially wide bid/ask spreads, (v) initial value below issue price, and (vi) complex CPDI tax treatment. The notes are not insured by CDIC or FDIC, are not bail-in-able under Canadian law, and are intended for buy-and-hold investors able to tolerate limited liquidity.
La Royal Bank of Canada (RY) emette 339.000 $ di Note Senior Unsecured a Rendimento Limitato collegate all'indice S&P 500, con scadenza il 2 gennaio 2030. Le note offrono una partecipazione del 100% all'apprezzamento dell'indice fino a un Rendimento Massimo del 41% (valore massimo di rimborso di 1.410 $ per ogni 1.000 $ di capitale). Se l'indice chiude stabile o in calo alla data di valutazione del 27 dicembre 2029, gli investitori ricevono solo il capitale investito. La struttura quindi garantisce la preservazione del capitale a scadenza senza partecipazione alle perdite, mentre il potenziale guadagno è limitato.
Termini commerciali principali
- Prezzo di emissione: 100% del capitale; investimento minimo 1.000 $.
- Tasso di partecipazione: 100% (soggetto al limite del 41%).
- Nessuna cedola periodica; le note non pagano interessi.
- Valore stimato iniziale: 986,09 $ per 1.000 $, inferiore al prezzo di offerta pubblica a causa di commissioni di strutturazione, costo interno di finanziamento e coperture.
- Nessuna commissione di sottoscrizione per RBC Capital Markets, LLC (RBCCM); broker non affiliati possono ricevere fino a 8 $ per 1.000 $ come commissione di strutturazione.
- Non quotate in borsa; la liquidità secondaria, se presente, dipenderà da RBCCM come market maker.
- Rischio di credito: obbligazione senior unsecured della Royal Bank of Canada; i pagamenti dipendono dalla solvibilità dell'emittente.
- Fiscalità: previste come strumenti di debito a pagamento contingente (CPDI), con necessità di imputare annualmente interessi per i possessori statunitensi.
Performance esemplificativa: un guadagno del 30% sull'indice restituirebbe 1.300 $ (30%), mentre qualsiasi guadagno pari o superiore al 41% è limitato a 1.410 $ (41%). Un rendimento negativo dell'indice rimborsa comunque il valore nominale. I dati storici dell'indice dal 2015 al 2025 sono forniti solo a scopo illustrativo e non come previsione.
Rischi principali evidenziati dall'emittente includono (i) rendimento limitato rispetto a un investimento diretto in azioni, (ii) assenza di cedole e potenziale costo opportunità, (iii) rischio di credito dell'emittente, (iv) illiquidità e possibili ampi spread denaro-lettera, (v) valore iniziale inferiore al prezzo di emissione, e (vi) complessa gestione fiscale CPDI. Le note non sono assicurate da CDIC o FDIC, non sono soggette a bail-in secondo la legge canadese, e sono destinate a investitori buy-and-hold in grado di tollerare una liquidità limitata.
Royal Bank of Canada (RY) está emitiendo 339,000 $ en Notas Senior No Garantizadas con Retorno Limitado vinculadas al índice S&P 500, con vencimiento el 2 de enero de 2030. Las notas ofrecen una participación del 100% en cualquier apreciación del índice hasta un Retorno Máximo del 41% (valor máximo de redención de 1,410 $ por cada 1,000 $ de principal). Si el índice termina igual o más bajo en la fecha de valoración del 27 de diciembre de 2029, los inversores sólo recuperan su principal. Por lo tanto, la estructura proporciona preservación del capital al vencimiento sin participación en pérdidas y con un límite estricto en las ganancias.
Términos comerciales clave
- Precio de emisión: 100% del principal; inversión mínima 1,000 $.
- Tasa de participación: 100% (sujeto al límite del 41%).
- No hay cupones periódicos; las notas no generan intereses.
- Valor estimado inicial: 986.09 $ por 1,000 $, inferior al precio de oferta pública debido a comisiones de estructuración, costo interno de financiamiento y cobertura.
- No hay comisión de suscripción para RBC Capital Markets, LLC (RBCCM); corredores no afiliados pueden recibir hasta 8 $ por 1,000 $ como comisión de estructuración.
- No cotizan en bolsa; la liquidez secundaria, si la hay, dependerá de RBCCM como creador de mercado.
- Exposición crediticia: obligación senior no garantizada de Royal Bank of Canada; los pagos dependen de la solvencia del emisor.
- Fiscalidad: se espera que se traten como instrumentos de deuda con pago contingente (CPDI), requiriendo acumulación anual de intereses imputados para titulares en EE.UU.
Rendimiento ilustrativo: una ganancia del 30% en el índice retornaría 1,300 $ (30%), mientras que cualquier ganancia ≥41% se limita a 1,410 $ (41%). Cualquier retorno negativo del índice reembolsa al valor nominal. Los datos históricos del índice de 2015 a 2025 se proporcionan sólo como contexto y no como predicción.
Riesgos principales destacados por el emisor incluyen (i) límite en el alza comparado con una inversión directa en acciones, (ii) ausencia de pagos de intereses y posible costo de oportunidad, (iii) riesgo crediticio del emisor, (iv) iliquidez y posibles amplios spreads de compra/venta, (v) valor inicial por debajo del precio de emisión, y (vi) tratamiento fiscal complejo CPDI. Las notas no están aseguradas por CDIC o FDIC, no son sujetas a rescates bajo la ley canadiense, y están destinadas a inversores buy-and-hold capaces de tolerar liquidez limitada.
로열뱅크오브캐나다(RY)가 S&P 500 지수에 연동된 339,000달러 규모의 선순위 무담보 캡드 리턴 노트를 2030년 1월 2일 만기로 발행합니다. 이 노트는 지수 상승분에 대해 100% 참여하되 최대 수익률 41%까지(1,000달러 원금당 최대 상환액 1,410달러) 상한이 있습니다. 2029년 12월 27일 평가일에 지수가 동일하거나 하락 마감하면 투자자는 원금만 돌려받습니다. 따라서 이 구조는 만기 시 원금 보존을 제공하며 하락 위험에 노출되지 않고 상승 수익은 엄격히 제한됩니다.
주요 상업 조건
- 발행 가격: 원금의 100%; 최소 투자금 1,000달러.
- 참여율: 100%(41% 상한 적용).
- 정기 쿠폰 없음; 이자는 지급되지 않음.
- 초기 예상 가치: 1,000달러당 986.09달러, 구조화 수수료, 내부 자금 조달 비용 및 헤지 비용으로 인해 공모가보다 낮음.
- RBC Capital Markets, LLC(RBCCM)에는 인수 수수료 없음; 비제휴 중개인은 1,000달러당 최대 8달러의 구조화 수수료를 받을 수 있음.
- 거래소 미상장; 2차 유동성은 RBCCM의 마켓메이커 활동에 따라 달라짐.
- 신용 노출: 로열뱅크오브캐나다의 선순위 무담보 채무; 지급은 발행자의 지급 능력에 의존.
- 세금: 미국 투자자는 연간 가상 이자 누적이 필요한 조건부 지급 부채 상품(CPDI)으로 분류될 가능성 있음.
예시 성과: 지수가 30% 상승하면 1,300달러(30%)를, 41% 이상 상승 시에는 1,410달러(41%)로 제한됩니다. 지수 하락 시에도 원금이 상환됩니다. 2015년부터 2025년까지의 과거 지수 데이터는 참고용이며 예측이 아닙니다.
주요 위험으로 발행자는 (i) 직접 주식 투자 대비 상한 수익, (ii) 이자 미지급 및 기회비용 가능성, (iii) 발행자 신용 위험, (iv) 유동성 부족 및 넓은 매수/매도 스프레드 가능성, (v) 발행가 대비 낮은 초기 가치, (vi) 복잡한 CPDI 세무 처리를 꼽고 있습니다. 이 노트는 CDIC나 FDIC의 보험 대상이 아니며, 캐나다 법에 따른 강제 자본 전환 대상이 아니고, 제한된 유동성을 감내할 수 있는 장기 보유 투자자용입니다.
La Royal Bank of Canada (RY) émet 339 000 $ de billets senior non garantis à rendement plafonné liés à l'indice S&P 500, arrivant à échéance le 2 janvier 2030. Ces billets offrent une participation à 100 % à toute appréciation de l'indice jusqu'à un rendement maximal de 41 % (valeur de remboursement maximale de 1 410 $ pour 1 000 $ de principal). Si l'indice termine stable ou en baisse à la date d'évaluation du 27 décembre 2029, les investisseurs ne récupèrent que leur principal. La structure offre donc une préservation du capital à l'échéance sans participation aux pertes, avec un plafond strict sur les gains.
Principaux termes commerciaux
- Prix d'émission : 100 % du principal ; investissement minimum de 1 000 $.
- Taux de participation : 100 % (sous réserve du plafond de 41 %).
- Pas de coupons périodiques ; les billets ne portent pas d’intérêts.
- Valeur estimée initiale : 986,09 $ pour 1 000 $, inférieure au prix d'offre publique en raison des frais de structuration, du coût interne de financement et des coûts de couverture.
- Aucune commission de souscription versée à RBC Capital Markets, LLC (RBCCM) ; les courtiers non affiliés peuvent recevoir jusqu’à 8 $ pour 1 000 $ en frais de structuration.
- Non cotés en bourse ; la liquidité secondaire, si elle existe, dépendra de RBCCM en tant que teneur de marché.
- Exposition au crédit : obligation senior non garantie de Royal Bank of Canada ; les paiements dépendent de la solvabilité de l’émetteur.
- Fiscalité : attendu comme des instruments de dette à paiement conditionnel (CPDI), nécessitant une comptabilisation annuelle des intérêts imputés pour les détenteurs américains.
Performance illustrative : un gain de 30 % de l’indice rapporterait 1 300 $ (30 %), tandis que tout gain ≥41 % est limité à 1 410 $ (41 %). Tout rendement négatif de l’indice rembourse la valeur nominale. Les données historiques de l’indice de 2015 à 2025 sont fournies à titre indicatif et ne constituent pas une prévision.
Principaux risques soulignés par l’émetteur incluent (i) plafond de hausse par rapport à un investissement direct en actions, (ii) absence de paiements d’intérêts et coût d’opportunité potentiel, (iii) risque de crédit de l’émetteur, (iv) illiquidité et spreads achat/vente potentiellement larges, (v) valeur initiale inférieure au prix d’émission, et (vi) traitement fiscal complexe CPDI. Les billets ne sont pas assurés par la CDIC ou la FDIC, ne sont pas soumis à un renflouement forcé selon la loi canadienne, et sont destinés aux investisseurs buy-and-hold capables de tolérer une liquidité limitée.
Die Royal Bank of Canada (RY) gibt Senior Unsecured Capped Return Notes im Wert von 339.000 $ aus, die an den S&P 500 Index gekoppelt sind und am 2. Januar 2030 fällig werden. Die Notes bieten eine 100%ige Partizipation an der Indexsteigerung bis zu einer maximalen Rendite von 41% (maximaler Rückzahlungswert von 1.410 $ pro 1.000 $ Nennwert). Wenn der Index am Bewertungstag, dem 27. Dezember 2029, unverändert oder niedriger schließt, erhalten die Anleger nur ihr Kapital zurück. Die Struktur gewährleistet somit Kapitalerhalt bei Fälligkeit, ohne Beteiligung an Kursverlusten, während die Aufwärtsrendite streng begrenzt ist.
Wesentliche kommerzielle Bedingungen
- Ausgabepreis: 100% des Kapitals; Mindestanlage 1.000 $.
- Partizipationsrate: 100% (mit 41% Obergrenze).
- Keine periodischen Kupons; die Notes sind nicht verzinslich.
- Geschätzter Anfangswert: 986,09 $ pro 1.000 $, unter dem öffentlichen Angebotspreis aufgrund von Strukturierungsgebühren, internen Finanzierungskosten und Absicherungskosten.
- Keine Underwriting-Gebühr an RBC Capital Markets, LLC (RBCCM); nicht verbundene Broker können bis zu 8 $ pro 1.000 $ als Strukturierungsgebühr erhalten.
- Nicht börsennotiert; die Sekundärliquidität, falls vorhanden, hängt von RBCCM als Market Maker ab.
- Kreditrisiko: Senior ungesicherte Verbindlichkeit der Royal Bank of Canada; Zahlungen hängen von der Bonität des Emittenten ab.
- Steuerlich voraussichtlich als contingent payment debt instruments (CPDI) behandelt, was eine jährliche Zinsabgrenzung für US-Inhaber erfordert.
Beispielhafte Performance: Ein 30%iger Indexanstieg würde 1.300 $ (30%) zurückzahlen, während Gewinne ≥41% auf 1.410 $ (41%) begrenzt sind. Negative Indexrenditen werden zum Nennwert zurückgezahlt. Historische Indexdaten von 2015 bis 2025 dienen nur der Veranschaulichung und sind keine Prognose.
Hauptrisiken, die vom Emittenten hervorgehoben werden, umfassen (i) begrenztes Aufwärtspotential im Vergleich zu einer Direktanlage in Aktien, (ii) fehlende Zinszahlungen und mögliche Opportunitätskosten, (iii) Emittenten-Kreditrisiko, (iv) Illiquidität und potenziell breite Geld-/Brief-Spannen, (v) Anfangswert unter dem Ausgabepreis und (vi) komplexe CPDI-Steuerbehandlung. Die Notes sind nicht durch CDIC oder FDIC versichert, unterliegen keinem Bail-In nach kanadischem Recht und sind für Buy-and-Hold-Investoren mit begrenzter Liquidität vorgesehen.
- Return of principal at maturity regardless of index performance offers downside protection (subject to issuer credit).
- 41% maximum payoff delivers a defined upside equivalent to ~7.1% CAGR if achieved.
- No underwriting commission to RBCCM keeps explicit issuance costs low compared with many retail structured products.
- Upside capped at 41%, meaning investors underperform direct equity exposure in strong bull markets.
- Initial estimated value of $986.09 is below par, indicating an immediate value haircut for investors.
- No periodic coupons, resulting in opportunity cost versus fixed-income alternatives.
- Subject to Royal Bank of Canada credit risk; principal protection is only as strong as the issuer’s solvency.
- Notes are illiquid and unlisted, with any secondary sales likely at significant discounts and wide spreads.
- Complex CPDI tax treatment imposes annual taxable income without cash flows.
Insights
TL;DR: Capital-protected note with 41% upside cap, zero coupons, meaningful credit and liquidity trade-offs.
From a product engineering standpoint, the note is straightforward: a zero-coupon bond plus a call option on the S&P 500 capped at 41%. Over the 4.5-year tenor this equates to a maximum compound annual return of roughly 7.1%, attractive versus current risk-free yields but potentially inferior to expected equity returns. The absence of downside exposure appeals to capital-preservation seekers, yet investors bear RBC senior credit risk and sacrifice dividends. The initial estimated value (98.6% of par) confirms a 1.4-point embedded cost, modest for retail notes. Given the small $339k size, the deal is immaterial to RY’s balance sheet but offers investors a targeted, rules-based payoff.
TL;DR: Limited upside, no income, and poor liquidity offset principal protection; neutral-to-negative risk/reward.
The structure converts equity market exposure into a binary outcome: earn up to 41% or get par back. Investors forego dividends (≈1.4% annual yield on the S&P 500), pay an implied premium through the offer/estimated-value gap, and assume a single-name credit risk that is rated high-grade but not risk-free. Illiquidity and wide bid/ask spreads make interim exits costly, so the note suits buy-and-hold accounts only. Tax treatment as CPDI creates phantom income, further reducing net returns. For diversified portfolios, the instrument may serve as a defensive equity sleeve, yet risk-adjusted attractiveness depends heavily on one’s outlook for the S&P 500 over the period.
La Royal Bank of Canada (RY) emette 339.000 $ di Note Senior Unsecured a Rendimento Limitato collegate all'indice S&P 500, con scadenza il 2 gennaio 2030. Le note offrono una partecipazione del 100% all'apprezzamento dell'indice fino a un Rendimento Massimo del 41% (valore massimo di rimborso di 1.410 $ per ogni 1.000 $ di capitale). Se l'indice chiude stabile o in calo alla data di valutazione del 27 dicembre 2029, gli investitori ricevono solo il capitale investito. La struttura quindi garantisce la preservazione del capitale a scadenza senza partecipazione alle perdite, mentre il potenziale guadagno è limitato.
Termini commerciali principali
- Prezzo di emissione: 100% del capitale; investimento minimo 1.000 $.
- Tasso di partecipazione: 100% (soggetto al limite del 41%).
- Nessuna cedola periodica; le note non pagano interessi.
- Valore stimato iniziale: 986,09 $ per 1.000 $, inferiore al prezzo di offerta pubblica a causa di commissioni di strutturazione, costo interno di finanziamento e coperture.
- Nessuna commissione di sottoscrizione per RBC Capital Markets, LLC (RBCCM); broker non affiliati possono ricevere fino a 8 $ per 1.000 $ come commissione di strutturazione.
- Non quotate in borsa; la liquidità secondaria, se presente, dipenderà da RBCCM come market maker.
- Rischio di credito: obbligazione senior unsecured della Royal Bank of Canada; i pagamenti dipendono dalla solvibilità dell'emittente.
- Fiscalità: previste come strumenti di debito a pagamento contingente (CPDI), con necessità di imputare annualmente interessi per i possessori statunitensi.
Performance esemplificativa: un guadagno del 30% sull'indice restituirebbe 1.300 $ (30%), mentre qualsiasi guadagno pari o superiore al 41% è limitato a 1.410 $ (41%). Un rendimento negativo dell'indice rimborsa comunque il valore nominale. I dati storici dell'indice dal 2015 al 2025 sono forniti solo a scopo illustrativo e non come previsione.
Rischi principali evidenziati dall'emittente includono (i) rendimento limitato rispetto a un investimento diretto in azioni, (ii) assenza di cedole e potenziale costo opportunità, (iii) rischio di credito dell'emittente, (iv) illiquidità e possibili ampi spread denaro-lettera, (v) valore iniziale inferiore al prezzo di emissione, e (vi) complessa gestione fiscale CPDI. Le note non sono assicurate da CDIC o FDIC, non sono soggette a bail-in secondo la legge canadese, e sono destinate a investitori buy-and-hold in grado di tollerare una liquidità limitata.
Royal Bank of Canada (RY) está emitiendo 339,000 $ en Notas Senior No Garantizadas con Retorno Limitado vinculadas al índice S&P 500, con vencimiento el 2 de enero de 2030. Las notas ofrecen una participación del 100% en cualquier apreciación del índice hasta un Retorno Máximo del 41% (valor máximo de redención de 1,410 $ por cada 1,000 $ de principal). Si el índice termina igual o más bajo en la fecha de valoración del 27 de diciembre de 2029, los inversores sólo recuperan su principal. Por lo tanto, la estructura proporciona preservación del capital al vencimiento sin participación en pérdidas y con un límite estricto en las ganancias.
Términos comerciales clave
- Precio de emisión: 100% del principal; inversión mínima 1,000 $.
- Tasa de participación: 100% (sujeto al límite del 41%).
- No hay cupones periódicos; las notas no generan intereses.
- Valor estimado inicial: 986.09 $ por 1,000 $, inferior al precio de oferta pública debido a comisiones de estructuración, costo interno de financiamiento y cobertura.
- No hay comisión de suscripción para RBC Capital Markets, LLC (RBCCM); corredores no afiliados pueden recibir hasta 8 $ por 1,000 $ como comisión de estructuración.
- No cotizan en bolsa; la liquidez secundaria, si la hay, dependerá de RBCCM como creador de mercado.
- Exposición crediticia: obligación senior no garantizada de Royal Bank of Canada; los pagos dependen de la solvencia del emisor.
- Fiscalidad: se espera que se traten como instrumentos de deuda con pago contingente (CPDI), requiriendo acumulación anual de intereses imputados para titulares en EE.UU.
Rendimiento ilustrativo: una ganancia del 30% en el índice retornaría 1,300 $ (30%), mientras que cualquier ganancia ≥41% se limita a 1,410 $ (41%). Cualquier retorno negativo del índice reembolsa al valor nominal. Los datos históricos del índice de 2015 a 2025 se proporcionan sólo como contexto y no como predicción.
Riesgos principales destacados por el emisor incluyen (i) límite en el alza comparado con una inversión directa en acciones, (ii) ausencia de pagos de intereses y posible costo de oportunidad, (iii) riesgo crediticio del emisor, (iv) iliquidez y posibles amplios spreads de compra/venta, (v) valor inicial por debajo del precio de emisión, y (vi) tratamiento fiscal complejo CPDI. Las notas no están aseguradas por CDIC o FDIC, no son sujetas a rescates bajo la ley canadiense, y están destinadas a inversores buy-and-hold capaces de tolerar liquidez limitada.
로열뱅크오브캐나다(RY)가 S&P 500 지수에 연동된 339,000달러 규모의 선순위 무담보 캡드 리턴 노트를 2030년 1월 2일 만기로 발행합니다. 이 노트는 지수 상승분에 대해 100% 참여하되 최대 수익률 41%까지(1,000달러 원금당 최대 상환액 1,410달러) 상한이 있습니다. 2029년 12월 27일 평가일에 지수가 동일하거나 하락 마감하면 투자자는 원금만 돌려받습니다. 따라서 이 구조는 만기 시 원금 보존을 제공하며 하락 위험에 노출되지 않고 상승 수익은 엄격히 제한됩니다.
주요 상업 조건
- 발행 가격: 원금의 100%; 최소 투자금 1,000달러.
- 참여율: 100%(41% 상한 적용).
- 정기 쿠폰 없음; 이자는 지급되지 않음.
- 초기 예상 가치: 1,000달러당 986.09달러, 구조화 수수료, 내부 자금 조달 비용 및 헤지 비용으로 인해 공모가보다 낮음.
- RBC Capital Markets, LLC(RBCCM)에는 인수 수수료 없음; 비제휴 중개인은 1,000달러당 최대 8달러의 구조화 수수료를 받을 수 있음.
- 거래소 미상장; 2차 유동성은 RBCCM의 마켓메이커 활동에 따라 달라짐.
- 신용 노출: 로열뱅크오브캐나다의 선순위 무담보 채무; 지급은 발행자의 지급 능력에 의존.
- 세금: 미국 투자자는 연간 가상 이자 누적이 필요한 조건부 지급 부채 상품(CPDI)으로 분류될 가능성 있음.
예시 성과: 지수가 30% 상승하면 1,300달러(30%)를, 41% 이상 상승 시에는 1,410달러(41%)로 제한됩니다. 지수 하락 시에도 원금이 상환됩니다. 2015년부터 2025년까지의 과거 지수 데이터는 참고용이며 예측이 아닙니다.
주요 위험으로 발행자는 (i) 직접 주식 투자 대비 상한 수익, (ii) 이자 미지급 및 기회비용 가능성, (iii) 발행자 신용 위험, (iv) 유동성 부족 및 넓은 매수/매도 스프레드 가능성, (v) 발행가 대비 낮은 초기 가치, (vi) 복잡한 CPDI 세무 처리를 꼽고 있습니다. 이 노트는 CDIC나 FDIC의 보험 대상이 아니며, 캐나다 법에 따른 강제 자본 전환 대상이 아니고, 제한된 유동성을 감내할 수 있는 장기 보유 투자자용입니다.
La Royal Bank of Canada (RY) émet 339 000 $ de billets senior non garantis à rendement plafonné liés à l'indice S&P 500, arrivant à échéance le 2 janvier 2030. Ces billets offrent une participation à 100 % à toute appréciation de l'indice jusqu'à un rendement maximal de 41 % (valeur de remboursement maximale de 1 410 $ pour 1 000 $ de principal). Si l'indice termine stable ou en baisse à la date d'évaluation du 27 décembre 2029, les investisseurs ne récupèrent que leur principal. La structure offre donc une préservation du capital à l'échéance sans participation aux pertes, avec un plafond strict sur les gains.
Principaux termes commerciaux
- Prix d'émission : 100 % du principal ; investissement minimum de 1 000 $.
- Taux de participation : 100 % (sous réserve du plafond de 41 %).
- Pas de coupons périodiques ; les billets ne portent pas d’intérêts.
- Valeur estimée initiale : 986,09 $ pour 1 000 $, inférieure au prix d'offre publique en raison des frais de structuration, du coût interne de financement et des coûts de couverture.
- Aucune commission de souscription versée à RBC Capital Markets, LLC (RBCCM) ; les courtiers non affiliés peuvent recevoir jusqu’à 8 $ pour 1 000 $ en frais de structuration.
- Non cotés en bourse ; la liquidité secondaire, si elle existe, dépendra de RBCCM en tant que teneur de marché.
- Exposition au crédit : obligation senior non garantie de Royal Bank of Canada ; les paiements dépendent de la solvabilité de l’émetteur.
- Fiscalité : attendu comme des instruments de dette à paiement conditionnel (CPDI), nécessitant une comptabilisation annuelle des intérêts imputés pour les détenteurs américains.
Performance illustrative : un gain de 30 % de l’indice rapporterait 1 300 $ (30 %), tandis que tout gain ≥41 % est limité à 1 410 $ (41 %). Tout rendement négatif de l’indice rembourse la valeur nominale. Les données historiques de l’indice de 2015 à 2025 sont fournies à titre indicatif et ne constituent pas une prévision.
Principaux risques soulignés par l’émetteur incluent (i) plafond de hausse par rapport à un investissement direct en actions, (ii) absence de paiements d’intérêts et coût d’opportunité potentiel, (iii) risque de crédit de l’émetteur, (iv) illiquidité et spreads achat/vente potentiellement larges, (v) valeur initiale inférieure au prix d’émission, et (vi) traitement fiscal complexe CPDI. Les billets ne sont pas assurés par la CDIC ou la FDIC, ne sont pas soumis à un renflouement forcé selon la loi canadienne, et sont destinés aux investisseurs buy-and-hold capables de tolérer une liquidité limitée.
Die Royal Bank of Canada (RY) gibt Senior Unsecured Capped Return Notes im Wert von 339.000 $ aus, die an den S&P 500 Index gekoppelt sind und am 2. Januar 2030 fällig werden. Die Notes bieten eine 100%ige Partizipation an der Indexsteigerung bis zu einer maximalen Rendite von 41% (maximaler Rückzahlungswert von 1.410 $ pro 1.000 $ Nennwert). Wenn der Index am Bewertungstag, dem 27. Dezember 2029, unverändert oder niedriger schließt, erhalten die Anleger nur ihr Kapital zurück. Die Struktur gewährleistet somit Kapitalerhalt bei Fälligkeit, ohne Beteiligung an Kursverlusten, während die Aufwärtsrendite streng begrenzt ist.
Wesentliche kommerzielle Bedingungen
- Ausgabepreis: 100% des Kapitals; Mindestanlage 1.000 $.
- Partizipationsrate: 100% (mit 41% Obergrenze).
- Keine periodischen Kupons; die Notes sind nicht verzinslich.
- Geschätzter Anfangswert: 986,09 $ pro 1.000 $, unter dem öffentlichen Angebotspreis aufgrund von Strukturierungsgebühren, internen Finanzierungskosten und Absicherungskosten.
- Keine Underwriting-Gebühr an RBC Capital Markets, LLC (RBCCM); nicht verbundene Broker können bis zu 8 $ pro 1.000 $ als Strukturierungsgebühr erhalten.
- Nicht börsennotiert; die Sekundärliquidität, falls vorhanden, hängt von RBCCM als Market Maker ab.
- Kreditrisiko: Senior ungesicherte Verbindlichkeit der Royal Bank of Canada; Zahlungen hängen von der Bonität des Emittenten ab.
- Steuerlich voraussichtlich als contingent payment debt instruments (CPDI) behandelt, was eine jährliche Zinsabgrenzung für US-Inhaber erfordert.
Beispielhafte Performance: Ein 30%iger Indexanstieg würde 1.300 $ (30%) zurückzahlen, während Gewinne ≥41% auf 1.410 $ (41%) begrenzt sind. Negative Indexrenditen werden zum Nennwert zurückgezahlt. Historische Indexdaten von 2015 bis 2025 dienen nur der Veranschaulichung und sind keine Prognose.
Hauptrisiken, die vom Emittenten hervorgehoben werden, umfassen (i) begrenztes Aufwärtspotential im Vergleich zu einer Direktanlage in Aktien, (ii) fehlende Zinszahlungen und mögliche Opportunitätskosten, (iii) Emittenten-Kreditrisiko, (iv) Illiquidität und potenziell breite Geld-/Brief-Spannen, (v) Anfangswert unter dem Ausgabepreis und (vi) komplexe CPDI-Steuerbehandlung. Die Notes sind nicht durch CDIC oder FDIC versichert, unterliegen keinem Bail-In nach kanadischem Recht und sind für Buy-and-Hold-Investoren mit begrenzter Liquidität vorgesehen.
Filed Pursuant to Rule 433
Registration Statement No. 333-282565
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AUTOCALLABLE LEVERAGED INDEX RETURN NOTES® (LIRNs®) |
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Autocallable LIRNs® Linked to the Nasdaq-100 Index® |
The graph above and the table below reflect the hypothetical return on the notes, based on the terms contained in the table to the left (using the mid-point for any range(s)). The graph and table have been prepared for purposes of illustration only, assume that the notes are not called on any Observation Date and do not take into account any tax consequences from investing in the notes. Hypothetical Percentage Change from the Starting Value to the Ending Value Hypothetical Redemption Amount per Unit(1) Hypothetical Total Rate of Return on the Notes -100.00% $0.00 -100.00% -75.00% $2.50 -75.00% -50.00% $5.00 -50.00% -40.00% $6.00 -40.00% -30.00% $7.00 -30.00% -20.00% $8.00 -20.00% -10.00% $9.00 -10.00% -5.00% $9.50 -5.00% 0.00%(2) $10.00 0.00% 10.00% $11.50 15.00% 20.00% $13.00 30.00% 30.00% $14.50 45.00% 40.00% $16.00 60.00% 50.00% $17.50 75.00% (1)The Redemption Amount per unit is based on the hypothetical Participation Rate. (2)This hypothetical percentage change corresponds to the Threshold Value. |
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Issuer |
The Bank of Nova Scotia (“BNS”) |
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Principal Amount |
$10.00 per unit |
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Term |
Approximately three years, if not called |
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Market Measure |
The Nasdaq-100 Index® (Bloomberg symbol: “NDX”) |
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Automatic Call |
The notes will be called automatically on the Observation Date if the closing level of the Market Measure is equal to or greater than the Call Level |
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Call Level |
100.00% of the Starting Value |
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Observation Date |
Approximately one year from the pricing date |
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Call Amounts |
$11.00 if called on the Observation Date |
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Payout Profile at Maturity |
●[140.00% to 160.00%] leveraged upside exposure to increases in the Market Measure ●1-to-1 downside exposure to decreases in the Market Measure, with up to 100.00% of your principal at risk |
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Participation Rate |
[140.00% to 160.00%], to be determined on the pricing date |
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Threshold Value |
100.00% of the Starting Value |
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Investment Considerations |
This investment is designed for investors who anticipate that the Market Measure will increase over the term of the notes, are willing to take full downside risk and forgo interim interest payments, and are willing to have their notes called prior to maturity. |
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Preliminary Offering Documents |
http://www.sec.gov/Archives/edgar/data/9631/000183988225035944/bns_fwp-18767.htm |
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Exchange Listing |
No |
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You should read the relevant Preliminary Offering Documents before you invest. Click on the Preliminary Offering Documents hyperlink above or call your Financial Advisor for a hard copy. Risk Factors Please see the Preliminary Offering Documents for a description of certain risks related to this investment, including, but not limited to, the following: ●If the notes are not automatically called, depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal. ●If the notes are called, your return on the notes is limited to the return represented by the Call Premium. ●Payments on the notes are subject to the credit risk of BNS, and actual or perceived changes in the creditworthiness of BNS are expected to affect the value of the notes. If BNS becomes insolvent or is unable to pay its obligations, you may lose your entire investment. ●The initial estimated value of the notes on the pricing date will be less than their public offering price. ●If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date. ●You will have no rights of a holder of the securities represented by the Market Measure, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those securities. ●The notes are subject to risks associated with investments in securities linked to the value of non-U.S. equity securities. Final terms will be set on the pricing date within the given range for the specified Market-Linked Investment. Please see the Preliminary Offering Documents for complete product disclosure, including related risks and tax disclosure. |
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The Bank of Nova Scotia (“BNS”) has filed a registration statement (which includes a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the notes that are described in this Guidebook. Before you invest, you should carefully read the prospectus in that registration statement and other documents that BNS has filed with the SEC for more complete information about BNS and any offering described in this Guidebook. You may obtain these documents without cost by visiting EDGAR on the SEC Website at www.sec.gov. BNS’s Central Index Key, or CIK, on the SEC website is 9631. Alternatively, Merrill Lynch will arrange to send you the prospectus and other documents relating to any offering described in this document if you so request by calling toll-free 1-800-294-1322. BNS faces risks that are specific to its business, and we encourage you to carefully consider these risks before making an investment in its securities.
FAQ
What is the maximum return on Royal Bank of Canada (RY) 2025 Capped Return Notes?
Do the RY Capped Return Notes guarantee principal?
When do the notes mature and how long is the investment term?
Are the notes listed or easily tradable?
How are the notes taxed for U.S. investors?
Why is the initial estimated value below the issue price?
Do the notes pay dividends or interest during the term?
