[FWP] Bank of Nova Scotia Free Writing Prospectus
The Bank of Nova Scotia (BNS) is marketing Contingent Income Auto-Callable Securities linked to the common stock of GE Vernova Inc. (GEV UN). Each unlisted note has a $1,000 stated principal amount, a three-year tenor (pricing: 18-Jul-2025; maturity: 21-Jul-2028) and is issued under BNS’s Senior Note Program, Series A.
Income profile: On each quarterly determination date, holders receive a $31.25 coupon (12.50% p.a.) provided the underlying closes at or above the 50% downside threshold. Thanks to a “memory” feature, missed coupons are paid on a later date if the threshold is subsequently met.
Auto-call: If GEV trades at or above its initial price (100% call threshold) on any quarterly observation before the final date, the note is automatically redeemed at par plus the applicable coupon(s), terminating future payments.
Principal repayment: • At maturity, if GEV is ≥ 50% of the initial price, investors receive par plus the final and any unpaid coupons. • If GEV is < 50%, repayment equals par multiplied by the share-performance factor, exposing investors to losses of more than 50% and potentially total loss.
Secondary considerations: The estimated value on the pricing date is $936.28-$966.28, below the issue price, reflecting upfront selling commission of $22.50 (2.25%) and structuring costs. The notes are senior unsecured obligations of BNS and carry its credit risk. They will not be listed, so liquidity relies on the issuer’s discretionary market-making.
Key risks highlighted include principal-at-risk, coupon deferral or non-payment, reinvestment risk if called, limited trading history for GEV, and uncertain U.S./Canadian tax treatment.
La Bank of Nova Scotia (BNS) sta promuovendo Contingent Income Auto-Callable Securities collegati alle azioni ordinarie di GE Vernova Inc. (GEV UN). Ogni nota non quotata ha un valore nominale di 1.000 $, una durata di tre anni (prezzo: 18-lug-2025; scadenza: 21-lug-2028) ed è emessa nell'ambito del Programma Senior Note di BNS, Serie A.
Profilo di rendimento: In ogni data di determinazione trimestrale, i detentori ricevono un coupon di 31,25 $ (12,50% annuo) a condizione che il sottostante chiuda al di sopra o pari alla soglia di ribasso del 50%. Grazie a una funzione di “memoria”, i coupon non pagati vengono corrisposti in una data successiva se la soglia viene poi raggiunta.
Auto-call: Se GEV quota al livello del prezzo iniziale (soglia di richiamo al 100%) in una qualsiasi data di osservazione trimestrale prima della scadenza finale, la nota viene rimborsata automaticamente a valore nominale più i coupon dovuti, interrompendo i pagamenti futuri.
Rimborso del capitale: • Alla scadenza, se GEV è ≥ 50% del prezzo iniziale, gli investitori ricevono il valore nominale più l’ultimo coupon e eventuali coupon non pagati. • Se GEV è < 50%, il rimborso è pari al valore nominale moltiplicato per il fattore di performance azionaria, esponendo gli investitori a perdite superiori al 50% e potenzialmente alla perdita totale.
Considerazioni secondarie: Il valore stimato alla data di pricing è compreso tra 936,28 $ e 966,28 $, inferiore al prezzo di emissione, riflettendo una commissione di vendita anticipata di 22,50 $ (2,25%) e costi di strutturazione. Le note sono obbligazioni senior non garantite di BNS e comportano il rischio di credito dell’emittente. Non saranno quotate, quindi la liquidità dipende dal market-making discrezionale dell’emittente.
Principali rischi evidenziati includono rischio sul capitale, differimento o mancato pagamento dei coupon, rischio di reinvestimento in caso di richiamo, storia di negoziazione limitata per GEV e trattamento fiscale incerto negli Stati Uniti e in Canada.
El Bank of Nova Scotia (BNS) está comercializando Valores Autollamables con Ingresos Contingentes vinculados a las acciones comunes de GE Vernova Inc. (GEV UN). Cada nota no listada tiene un valor nominal de
Perfil de ingresos: En cada fecha de determinación trimestral, los tenedores reciben un cupón de $31.25 (12.50% anual) siempre que el subyacente cierre en o por encima del umbral de caída del 50%. Gracias a una función de “memoria”, los cupones no pagados se abonan en una fecha posterior si se cumple el umbral.
Auto-llamada: Si GEV cotiza en o por encima de su precio inicial (umbral de llamada del 100%) en cualquier observación trimestral antes de la fecha final, la nota se redime automáticamente al valor nominal más los cupones aplicables, terminando los pagos futuros.
Reembolso del principal: • Al vencimiento, si GEV es ≥ 50% del precio inicial, los inversores reciben el valor nominal más el cupón final y cualquier cupón no pagado. • Si GEV es < 50%, el reembolso equivale al valor nominal multiplicado por el factor de rendimiento de la acción, exponiendo a los inversores a pérdidas superiores al 50% y potencialmente a la pérdida total.
Consideraciones secundarias: El valor estimado en la fecha de precio es de $936.28-$966.28, por debajo del precio de emisión, reflejando una comisión de venta inicial de $22.50 (2.25%) y costos de estructuración. Las notas son obligaciones senior no garantizadas de BNS y conllevan su riesgo crediticio. No estarán listadas, por lo que la liquidez depende del market-making discrecional del emisor.
Riesgos clave destacados incluyen riesgo de pérdida de principal, aplazamiento o impago de cupones, riesgo de reinversión si se llama, historial limitado de negociación para GEV y tratamiento fiscal incierto en EE.UU. y Canadá.
노바스코샤 은행(BNS)이 GE Vernova Inc. (GEV UN)의 보통주에 연계된 조건부 소득 자동상환 증권을 판매하고 있습니다. 각 비상장 노트는 1,000달러 명목금액, 3년 만기(가격 산정일: 2025년 7월 18일; 만기: 2028년 7월 21일)이며 BNS의 시니어 노트 프로그램, 시리즈 A 하에 발행됩니다.
수익 프로필: 분기별 결정일마다 기초자산이 50% 하락 한계선 이상에서 마감하면 보유자는 31.25달러 쿠폰(연 12.50%)을 받습니다. “메모리” 기능 덕분에 미지급 쿠폰은 이후 한계선이 충족되면 지급됩니다.
자동상환: 최종일 이전 분기 관측일 중 GEV가 최초 가격(100% 상환 한계선) 이상으로 거래되면, 노트는 원금과 해당 쿠폰과 함께 자동 상환되어 이후 지급이 종료됩니다.
원금 상환: • 만기 시 GEV가 최초 가격의 50% 이상이면 투자자는 원금과 최종 쿠폰 및 미지급 쿠폰을 받습니다. • GEV가 50% 미만이면 상환금은 원금에 주가 성과 계수를 곱한 금액으로, 투자자는 50% 이상의 손실과 전액 손실 위험에 노출됩니다.
기타 고려사항: 가격 산정일 기준 예상 가치는 936.28~966.28달러로, 발행가보다 낮으며 선취 판매 수수료 22.50달러(2.25%)와 구조화 비용이 반영되었습니다. 노트는 BNS의 무담보 선순위 채무이며 신용 위험을 수반합니다. 상장되지 않아 유동성은 발행자의 재량에 따른 시장 조성에 의존합니다.
주요 위험으로는 원금 손실 위험, 쿠폰 연기 또는 미지급, 상환 시 재투자 위험, GEV의 제한된 거래 이력, 미국 및 캐나다의 불확실한 세금 처리가 포함됩니다.
La Banque de Nouvelle-Écosse (BNS) commercialise des Contingent Income Auto-Callable Securities liés aux actions ordinaires de GE Vernova Inc. (GEV UN). Chaque note non cotée a une valeur nominale de 1 000 $, une durée de trois ans (fixation du prix : 18 juil. 2025 ; échéance : 21 juil. 2028) et est émise dans le cadre du programme Senior Note de BNS, série A.
Profil de revenu : À chaque date de détermination trimestrielle, les détenteurs reçoivent un coupon de 31,25 $ (12,50 % par an) à condition que le sous-jacent clôture au-dessus ou à égalité du seuil de baisse de 50 %. Grâce à une fonction « mémoire », les coupons manqués sont versés ultérieurement si le seuil est ensuite atteint.
Rappel automatique : Si GEV se négocie au-dessus ou à son prix initial (seuil d’appel à 100 %) lors de toute observation trimestrielle avant la date finale, la note est automatiquement remboursée à sa valeur nominale plus les coupons applicables, mettant fin aux paiements futurs.
Remboursement du principal : • À l’échéance, si GEV est ≥ 50 % du prix initial, les investisseurs reçoivent la valeur nominale plus le dernier coupon et tout coupon impayé. • Si GEV est < 50 %, le remboursement correspond à la valeur nominale multipliée par le facteur de performance de l’action, exposant les investisseurs à des pertes supérieures à 50 % et potentiellement à une perte totale.
Considérations secondaires : La valeur estimée à la date de fixation du prix est comprise entre 936,28 $ et 966,28 $, inférieure au prix d’émission, reflétant une commission de vente initiale de 22,50 $ (2,25 %) et des coûts de structuration. Les notes sont des obligations senior non garanties de BNS et comportent son risque de crédit. Elles ne seront pas cotées, donc la liquidité dépendra du market-making discrétionnaire de l’émetteur.
Principaux risques mis en avant incluent le risque sur le principal, le report ou non-paiement des coupons, le risque de réinvestissement en cas de rappel, un historique de négociation limité pour GEV, et une incertitude fiscale aux États-Unis et au Canada.
Die Bank of Nova Scotia (BNS) vermarktet Contingent Income Auto-Callable Securities, die an die Stammaktien von GE Vernova Inc. (GEV UN) gekoppelt sind. Jede nicht börsennotierte Note hat einen Nennwert von 1.000 $, eine Laufzeit von drei Jahren (Preisfeststellung: 18.07.2025; Fälligkeit: 21.07.2028) und wird im Rahmen des Senior Note Programms, Serie A von BNS ausgegeben.
Einkommensprofil: An jedem vierteljährlichen Feststellungstag erhalten Inhaber einen Kupon von 31,25 $ (12,50 % p.a.), sofern der Basiswert auf oder über der 50 % Abwärtsgrenze schließt. Dank einer „Memory“-Funktion werden ausgefallene Kupons zu einem späteren Zeitpunkt nachgezahlt, wenn die Schwelle später erreicht wird.
Auto-Call: Wenn GEV an einem der vierteljährlichen Beobachtungstage vor dem Enddatum zum oder über dem Anfangspreis (100 % Call-Schwelle) handelt, wird die Note automatisch zum Nennwert plus fälliger Kupons zurückgezahlt, wodurch zukünftige Zahlungen enden.
Kapitalrückzahlung: • Bei Fälligkeit erhalten Anleger, falls GEV ≥ 50 % des Anfangspreises ist, den Nennwert plus den letzten und alle nicht gezahlten Kupons. • Ist GEV < 50 %, entspricht die Rückzahlung dem Nennwert multipliziert mit dem Aktien-Performance-Faktor, was Anleger einem Verlust von mehr als 50 % und möglicherweise einem Totalverlust aussetzt.
Sekundäre Überlegungen: Der geschätzte Wert am Preisfeststellungstag liegt bei 936,28 $ bis 966,28 $, unter dem Ausgabepreis, was eine anfängliche Verkaufsprovision von 22,50 $ (2,25 %) und Strukturierungskosten widerspiegelt. Die Notes sind unbesicherte Seniorverbindlichkeiten von BNS und tragen das Kreditrisiko des Emittenten. Sie werden nicht börslich gehandelt, sodass die Liquidität vom diskretionären Market Making des Emittenten abhängt.
Wesentliche Risiken umfassen das Risiko des Kapitalverlusts, Kuponstundungen oder -ausfälle, Reinvestitionsrisiken bei Rückruf, eingeschränkte Handelshistorie von GEV sowie unsichere steuerliche Behandlung in den USA und Kanada.
- High coupon potential: 12.50% annualized contingent income with memory feature can enhance cash flow in flat or moderately declining markets.
- 50% downside buffer: Investors are protected from loss of principal provided GE Vernova does not fall more than 50% at final observation.
- Auto-call mechanism: Early redemption at par plus coupon can shorten duration and boost annualized return if the underlying performs well.
- Principal at risk: If GE Vernova closes below 50% of the initial price at maturity, repayment declines one-for-one, potentially to zero.
- Capped upside: Investors forgo any appreciation in GE Vernova above the call threshold, limiting total return to received coupons.
- Secondary market risk: No exchange listing; liquidity is reliant on the issuer’s discretionary bid, likely at a material discount.
- Economic value gap: Estimated value of $936.28-$966.28 indicates a 3-6% structuring margin plus 2.25% commission embedded in the issue price.
Insights
TL;DR: Standard equity-linked autocall offers 12.5% yield but embeds 50% buffer; economic value ~3-6% below issue price; credit and liquidity risks persist.
The note’s 12.5% headline coupon is attractive in today’s rate backdrop, yet investors are effectively short a down-and-in put on GEV shares, capped at a 50% barrier. With only par repayment above the threshold, upside is foregone while downside is open beyond 50%. The issuer’s estimated value (≤ $966.28) implies a 3.4-6.4% structuring margin, in line with market norms. Lack of listing and discretionary market-making add exit-cost uncertainty. From BNS’s perspective, such issues raise non-core funding at a modest premium, but the scale is immaterial to group capital. Overall market impact is neutral; suitability depends on investors’ income preference versus equity downside tolerance.
TL;DR: Credit risk is moderate given BNS’s high investment-grade profile; note performance more sensitive to GEV equity path than to issuer solvency.
BNS holds long-standing ratings in the low-AA/high-A range from major agencies, suggesting low default probability over three years. Nevertheless, the note is senior unsecured, ranking pari passu with other BNS debt. Should BNS face stress, recovery on structured notes historically trails conventional bonds due to limited secondary demand. Investors must also weigh the limited operating history of GE Vernova, potentially increasing equity volatility and coupon uncertainty. In my view, the credit component is acceptable for most IG-oriented portfolios, but the equity-linked risk dominates valuation.
La Bank of Nova Scotia (BNS) sta promuovendo Contingent Income Auto-Callable Securities collegati alle azioni ordinarie di GE Vernova Inc. (GEV UN). Ogni nota non quotata ha un valore nominale di 1.000 $, una durata di tre anni (prezzo: 18-lug-2025; scadenza: 21-lug-2028) ed è emessa nell'ambito del Programma Senior Note di BNS, Serie A.
Profilo di rendimento: In ogni data di determinazione trimestrale, i detentori ricevono un coupon di 31,25 $ (12,50% annuo) a condizione che il sottostante chiuda al di sopra o pari alla soglia di ribasso del 50%. Grazie a una funzione di “memoria”, i coupon non pagati vengono corrisposti in una data successiva se la soglia viene poi raggiunta.
Auto-call: Se GEV quota al livello del prezzo iniziale (soglia di richiamo al 100%) in una qualsiasi data di osservazione trimestrale prima della scadenza finale, la nota viene rimborsata automaticamente a valore nominale più i coupon dovuti, interrompendo i pagamenti futuri.
Rimborso del capitale: • Alla scadenza, se GEV è ≥ 50% del prezzo iniziale, gli investitori ricevono il valore nominale più l’ultimo coupon e eventuali coupon non pagati. • Se GEV è < 50%, il rimborso è pari al valore nominale moltiplicato per il fattore di performance azionaria, esponendo gli investitori a perdite superiori al 50% e potenzialmente alla perdita totale.
Considerazioni secondarie: Il valore stimato alla data di pricing è compreso tra 936,28 $ e 966,28 $, inferiore al prezzo di emissione, riflettendo una commissione di vendita anticipata di 22,50 $ (2,25%) e costi di strutturazione. Le note sono obbligazioni senior non garantite di BNS e comportano il rischio di credito dell’emittente. Non saranno quotate, quindi la liquidità dipende dal market-making discrezionale dell’emittente.
Principali rischi evidenziati includono rischio sul capitale, differimento o mancato pagamento dei coupon, rischio di reinvestimento in caso di richiamo, storia di negoziazione limitata per GEV e trattamento fiscale incerto negli Stati Uniti e in Canada.
El Bank of Nova Scotia (BNS) está comercializando Valores Autollamables con Ingresos Contingentes vinculados a las acciones comunes de GE Vernova Inc. (GEV UN). Cada nota no listada tiene un valor nominal de
Perfil de ingresos: En cada fecha de determinación trimestral, los tenedores reciben un cupón de $31.25 (12.50% anual) siempre que el subyacente cierre en o por encima del umbral de caída del 50%. Gracias a una función de “memoria”, los cupones no pagados se abonan en una fecha posterior si se cumple el umbral.
Auto-llamada: Si GEV cotiza en o por encima de su precio inicial (umbral de llamada del 100%) en cualquier observación trimestral antes de la fecha final, la nota se redime automáticamente al valor nominal más los cupones aplicables, terminando los pagos futuros.
Reembolso del principal: • Al vencimiento, si GEV es ≥ 50% del precio inicial, los inversores reciben el valor nominal más el cupón final y cualquier cupón no pagado. • Si GEV es < 50%, el reembolso equivale al valor nominal multiplicado por el factor de rendimiento de la acción, exponiendo a los inversores a pérdidas superiores al 50% y potencialmente a la pérdida total.
Consideraciones secundarias: El valor estimado en la fecha de precio es de $936.28-$966.28, por debajo del precio de emisión, reflejando una comisión de venta inicial de $22.50 (2.25%) y costos de estructuración. Las notas son obligaciones senior no garantizadas de BNS y conllevan su riesgo crediticio. No estarán listadas, por lo que la liquidez depende del market-making discrecional del emisor.
Riesgos clave destacados incluyen riesgo de pérdida de principal, aplazamiento o impago de cupones, riesgo de reinversión si se llama, historial limitado de negociación para GEV y tratamiento fiscal incierto en EE.UU. y Canadá.
노바스코샤 은행(BNS)이 GE Vernova Inc. (GEV UN)의 보통주에 연계된 조건부 소득 자동상환 증권을 판매하고 있습니다. 각 비상장 노트는 1,000달러 명목금액, 3년 만기(가격 산정일: 2025년 7월 18일; 만기: 2028년 7월 21일)이며 BNS의 시니어 노트 프로그램, 시리즈 A 하에 발행됩니다.
수익 프로필: 분기별 결정일마다 기초자산이 50% 하락 한계선 이상에서 마감하면 보유자는 31.25달러 쿠폰(연 12.50%)을 받습니다. “메모리” 기능 덕분에 미지급 쿠폰은 이후 한계선이 충족되면 지급됩니다.
자동상환: 최종일 이전 분기 관측일 중 GEV가 최초 가격(100% 상환 한계선) 이상으로 거래되면, 노트는 원금과 해당 쿠폰과 함께 자동 상환되어 이후 지급이 종료됩니다.
원금 상환: • 만기 시 GEV가 최초 가격의 50% 이상이면 투자자는 원금과 최종 쿠폰 및 미지급 쿠폰을 받습니다. • GEV가 50% 미만이면 상환금은 원금에 주가 성과 계수를 곱한 금액으로, 투자자는 50% 이상의 손실과 전액 손실 위험에 노출됩니다.
기타 고려사항: 가격 산정일 기준 예상 가치는 936.28~966.28달러로, 발행가보다 낮으며 선취 판매 수수료 22.50달러(2.25%)와 구조화 비용이 반영되었습니다. 노트는 BNS의 무담보 선순위 채무이며 신용 위험을 수반합니다. 상장되지 않아 유동성은 발행자의 재량에 따른 시장 조성에 의존합니다.
주요 위험으로는 원금 손실 위험, 쿠폰 연기 또는 미지급, 상환 시 재투자 위험, GEV의 제한된 거래 이력, 미국 및 캐나다의 불확실한 세금 처리가 포함됩니다.
La Banque de Nouvelle-Écosse (BNS) commercialise des Contingent Income Auto-Callable Securities liés aux actions ordinaires de GE Vernova Inc. (GEV UN). Chaque note non cotée a une valeur nominale de 1 000 $, une durée de trois ans (fixation du prix : 18 juil. 2025 ; échéance : 21 juil. 2028) et est émise dans le cadre du programme Senior Note de BNS, série A.
Profil de revenu : À chaque date de détermination trimestrielle, les détenteurs reçoivent un coupon de 31,25 $ (12,50 % par an) à condition que le sous-jacent clôture au-dessus ou à égalité du seuil de baisse de 50 %. Grâce à une fonction « mémoire », les coupons manqués sont versés ultérieurement si le seuil est ensuite atteint.
Rappel automatique : Si GEV se négocie au-dessus ou à son prix initial (seuil d’appel à 100 %) lors de toute observation trimestrielle avant la date finale, la note est automatiquement remboursée à sa valeur nominale plus les coupons applicables, mettant fin aux paiements futurs.
Remboursement du principal : • À l’échéance, si GEV est ≥ 50 % du prix initial, les investisseurs reçoivent la valeur nominale plus le dernier coupon et tout coupon impayé. • Si GEV est < 50 %, le remboursement correspond à la valeur nominale multipliée par le facteur de performance de l’action, exposant les investisseurs à des pertes supérieures à 50 % et potentiellement à une perte totale.
Considérations secondaires : La valeur estimée à la date de fixation du prix est comprise entre 936,28 $ et 966,28 $, inférieure au prix d’émission, reflétant une commission de vente initiale de 22,50 $ (2,25 %) et des coûts de structuration. Les notes sont des obligations senior non garanties de BNS et comportent son risque de crédit. Elles ne seront pas cotées, donc la liquidité dépendra du market-making discrétionnaire de l’émetteur.
Principaux risques mis en avant incluent le risque sur le principal, le report ou non-paiement des coupons, le risque de réinvestissement en cas de rappel, un historique de négociation limité pour GEV, et une incertitude fiscale aux États-Unis et au Canada.
Die Bank of Nova Scotia (BNS) vermarktet Contingent Income Auto-Callable Securities, die an die Stammaktien von GE Vernova Inc. (GEV UN) gekoppelt sind. Jede nicht börsennotierte Note hat einen Nennwert von 1.000 $, eine Laufzeit von drei Jahren (Preisfeststellung: 18.07.2025; Fälligkeit: 21.07.2028) und wird im Rahmen des Senior Note Programms, Serie A von BNS ausgegeben.
Einkommensprofil: An jedem vierteljährlichen Feststellungstag erhalten Inhaber einen Kupon von 31,25 $ (12,50 % p.a.), sofern der Basiswert auf oder über der 50 % Abwärtsgrenze schließt. Dank einer „Memory“-Funktion werden ausgefallene Kupons zu einem späteren Zeitpunkt nachgezahlt, wenn die Schwelle später erreicht wird.
Auto-Call: Wenn GEV an einem der vierteljährlichen Beobachtungstage vor dem Enddatum zum oder über dem Anfangspreis (100 % Call-Schwelle) handelt, wird die Note automatisch zum Nennwert plus fälliger Kupons zurückgezahlt, wodurch zukünftige Zahlungen enden.
Kapitalrückzahlung: • Bei Fälligkeit erhalten Anleger, falls GEV ≥ 50 % des Anfangspreises ist, den Nennwert plus den letzten und alle nicht gezahlten Kupons. • Ist GEV < 50 %, entspricht die Rückzahlung dem Nennwert multipliziert mit dem Aktien-Performance-Faktor, was Anleger einem Verlust von mehr als 50 % und möglicherweise einem Totalverlust aussetzt.
Sekundäre Überlegungen: Der geschätzte Wert am Preisfeststellungstag liegt bei 936,28 $ bis 966,28 $, unter dem Ausgabepreis, was eine anfängliche Verkaufsprovision von 22,50 $ (2,25 %) und Strukturierungskosten widerspiegelt. Die Notes sind unbesicherte Seniorverbindlichkeiten von BNS und tragen das Kreditrisiko des Emittenten. Sie werden nicht börslich gehandelt, sodass die Liquidität vom diskretionären Market Making des Emittenten abhängt.
Wesentliche Risiken umfassen das Risiko des Kapitalverlusts, Kuponstundungen oder -ausfälle, Reinvestitionsrisiken bei Rückruf, eingeschränkte Handelshistorie von GEV sowie unsichere steuerliche Behandlung in den USA und Kanada.
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ISSUER FREE WRITING PROSPECTUS Filed Pursuant to Rule 433 Registration Statement No. 333-282565 Dated July 10, 2025 |
Contingent Income Auto-Callable Securities due on or about July 21, 2028
Based on the Performance of the Common Stock of GE Vernova 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.
| SUMMARY TERMS | |
| Issuer: | The Bank of Nova Scotia |
| Issue: | Senior Note Program, Series A |
| Underlying stock: | Common stock of GE Vernova Inc. (Bloomberg Ticker: “GEV UN”) |
| Stated principal amount: | $1,000.00 per security |
| Minimum investment: | $1,000 (1 security) |
| Pricing date: | July 18, 2025 |
| Original issue date: | July 23, 2025 (3 business days after the pricing date; see preliminary pricing supplement). |
| Final determination date: | July 18, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
| Maturity date: | July 21, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
| 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. |
| 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. |
| 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 $31.25 (equivalent to 12.50% 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. |
| 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. |
| 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. |
| 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. |
| 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: (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 50.00% of the stated principal amount and could be as low as zero. |
| Share performance factor: | Final share price divided by the initial share price |
| 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 |
| Downside threshold price: | 50.00% of the initial share price, as may be adjusted in the case of certain adjustment events as described in the accompanying product supplement |
| 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. |
| 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 |
| CUSIP / ISIN: | 06419DAZ6 / US06419DAZ69 |
| Listing: | The securities will not be listed or displayed on any securities exchange or any electronic communications network. |
| Commission: | $22.50 per stated principal amount. |
| Estimated value on the pricing date: | Expected to be between $936.28 and $966.28 per security. See “Risk Factors” in the preliminary pricing supplement. |
| Preliminary pricing supplement: | http://www.sec.gov/Archives/edgar/data/9631/000183988225038188/bns_424b2-20818.htm |
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HYPOTHETICAL PAYOUT |
The below figures are based on a hypothetical downside threshold price of 50.00% 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 |
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+40.00% |
$1,000.00 |
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+30.00% |
$1,000.00 |
|
+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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-30.00% |
$1,000.00 |
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-40.00% |
$1,000.00 |
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-50.00% |
$1,000.00 |
|
-51.00% |
$490.00 |
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-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 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.
▪There is limited trading history for the underlying stock.
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 for BNS Contingent Income Auto-Callable Securities?
When can the BNS securities be auto-called?
How is principal protected on these BNS notes?
What is the estimated value versus the issue price?
Are the notes listed on an exchange?
What credit risk do investors face?
