[FWP] Bank of Nova Scotia Free Writing Prospectus
Bank of Nova Scotia (BNS) has filed a Free Writing Prospectus for Series A senior market-linked securities that are auto-callable, principal-at-risk notes linked to the worst performer among Dell Technologies (DELL), Intel (INTC) and Eli Lilly (LLY). Each note is issued in $1,000 denominations, is expected to price on June 26 2025 and settle on July 1 2025, with a stated maturity of June 29 2028, unless automatically called earlier.
Automatic call feature: if on the one-year call date (July 1 2026) the lowest-performing stock closes at or above its starting price, investors receive face value plus a ≥ 50 % call premium (≥ $500), forfeiting any further upside.
Maturity payoff (if not called):
- Bullish scenario: worst-performer ends above its start; payment equals $1,000 plus 350 % of that stock’s price return.
- Sideways scenario: worst-performer ends between 50 % and 100 % of start; principal is returned.
- Bearish scenario: worst-performer ends below 50 % of start; investor loses 1-for-1 with the stock, exposing more than 50 %—up to full—principal loss.
The preliminary internal value is $900-$931.30 (90-93.13 % of face), reflecting dealer spreads and hedging costs. Notes pay no periodic interest, are unsecured obligations of BNS, and lack FDIC insurance or active secondary liquidity. Scotia Capital Inc. acts as calculation agent; Scotia Capital (USA) and Wells Fargo Securities distribute the product, receiving up to 2.575 % in selling concessions.
Key risks highlighted include full downside below the 50 % threshold, dependence on the single worst-performing stock, BNS credit risk, liquidity constraints, potential conflicts of interest, and uncertain tax treatment.
Bank of Nova Scotia (BNS) ha presentato un Free Writing Prospectus per titoli senior di Serie A collegati al mercato, auto-richiabili e con capitale a rischio, legati al titolo con la peggiore performance tra Dell Technologies (DELL), Intel (INTC) e Eli Lilly (LLY). Ogni nota è emessa in tagli da $1.000, con prezzo previsto per il 26 giugno 2025 e regolamento il 1° luglio 2025, con scadenza dichiarata al 29 giugno 2028, salvo richiamo automatico anticipato.
Funzione di richiamo automatico: se alla data di richiamo annuale (1° luglio 2026) il titolo con la performance peggiore chiude al prezzo di partenza o sopra di esso, gli investitori ricevono il valore nominale più un premio di richiamo ≥ 50% (≥ $500), rinunciando a ulteriori guadagni.
Pagamento a scadenza (se non richiamata):
- Scenario rialzista: il titolo peggiore termina sopra il prezzo iniziale; il pagamento corrisponde a $1.000 più il 350% del rendimento del titolo.
- Scenario laterale: il titolo peggiore termina tra il 50% e il 100% del prezzo iniziale; il capitale viene restituito.
- Scenario ribassista: il titolo peggiore termina sotto il 50% del prezzo iniziale; l'investitore subisce una perdita pari alla performance negativa del titolo, con una perdita di capitale che può superare il 50% fino al totale.
Il valore interno preliminare è compreso tra $900 e $931,30 (90-93,13% del valore nominale), considerando spread dei dealer e costi di copertura. Le note non pagano interessi periodici, sono obbligazioni non garantite di BNS e non sono assicurate FDIC né presentano liquidità secondaria attiva. Scotia Capital Inc. agisce come agente di calcolo; Scotia Capital (USA) e Wells Fargo Securities distribuiscono il prodotto, percependo fino al 2,575% in commissioni di vendita.
Rischi chiave evidenziati includono la perdita totale al di sotto della soglia del 50%, la dipendenza dal titolo con la performance peggiore, il rischio di credito di BNS, limitazioni di liquidità, potenziali conflitti di interesse e incertezze fiscali.
Bank of Nova Scotia (BNS) ha presentado un Free Writing Prospectus para valores senior Serie A vinculados al mercado, auto-rellamables y con principal en riesgo, ligados al peor desempeño entre Dell Technologies (DELL), Intel (INTC) y Eli Lilly (LLY). Cada nota se emite en denominaciones de $1,000, con precio esperado para el 26 de junio de 2025 y liquidación el 1 de julio de 2025, con vencimiento declarado para el 29 de junio de 2028, salvo llamado automático anticipado.
Función de llamado automático: si en la fecha de llamado anual (1 de julio de 2026) la acción con peor desempeño cierra al precio inicial o por encima, los inversionistas reciben el valor nominal más una prima de llamado ≥ 50% (≥ $500), renunciando a cualquier ganancia adicional.
Pago al vencimiento (si no es llamado):
- Escenario alcista: el peor desempeño termina por encima del precio inicial; el pago es $1,000 más el 350% del retorno del precio de esa acción.
- Escenario lateral: el peor desempeño termina entre 50% y 100% del precio inicial; se devuelve el principal.
- Escenario bajista: el peor desempeño termina por debajo del 50% del precio inicial; el inversionista pierde a razón de 1 a 1 con la acción, exponiéndose a una pérdida de principal superior al 50%, hasta la totalidad.
El valor interno preliminar es entre $900 y $931.30 (90-93.13% del nominal), reflejando spreads de dealer y costos de cobertura. Las notas no pagan intereses periódicos, son obligaciones no garantizadas de BNS y no cuentan con seguro FDIC ni liquidez secundaria activa. Scotia Capital Inc. actúa como agente de cálculo; Scotia Capital (USA) y Wells Fargo Securities distribuyen el producto, recibiendo hasta 2.575% en comisiones de venta.
Riesgos clave destacados incluyen pérdida total bajo el umbral del 50%, dependencia del peor desempeño individual, riesgo crediticio de BNS, restricciones de liquidez, posibles conflictos de interés y tratamiento fiscal incierto.
Bank of Nova Scotia (BNS)는 Dell Technologies (DELL), Intel (INTC), Eli Lilly (LLY) 중 최저 실적 주식에 연동된 시리즈 A 선순위 시장 연계 증권에 대한 Free Writing Prospectus를 제출했습니다. 이 증권은 자동 콜 가능하며 원금 위험이 있는 노트입니다. 각 노트는 $1,000 단위로 발행되며, 2025년 6월 26일 가격 책정 예정이고 2025년 7월 1일 결제 예정이며, 만기는 2028년 6월 29일로 명시되어 있으나 조기 자동 콜될 수 있습니다.
자동 콜 기능: 1년 콜 날짜인 2026년 7월 1일에 최저 실적 주식이 시작 가격 이상으로 마감하면 투자자는 액면가에 50% 이상의 콜 프리미엄 (≥ $500)을 받으며 추가 상승 수익은 포기합니다.
만기 시 지급 (콜되지 않은 경우):
- 강세 시나리오: 최저 실적 주식이 시작가 이상으로 종료하면 $1,000에 해당 주식 가격 상승률의 350%를 더해 지급합니다.
- 횡보 시나리오: 최저 실적 주식이 시작가의 50%에서 100% 사이에 마감하면 원금이 반환됩니다.
- 약세 시나리오: 최저 실적 주식이 시작가의 50% 미만으로 종료하면 투자자는 주식과 1:1 손실을 입어 50% 이상 최대 전액까지 원금 손실 위험이 있습니다.
예비 내부 가치는 $900~$931.30 (액면가의 90~93.13%)로 딜러 스프레드 및 헤지 비용을 반영합니다. 노트는 정기 이자를 지급하지 않으며 BNS의 무담보 채무이고 FDIC 보험이나 활성 2차 유동성이 없습니다. Scotia Capital Inc.가 계산 대행을 하며, Scotia Capital (USA)와 Wells Fargo Securities가 제품을 유통하며 최대 2.575%의 판매 수수료를 받습니다.
주요 위험 요소로는 50% 이하 하락 시 전액 손실, 최저 실적 단일 주식 의존, BNS 신용 위험, 유동성 제한, 잠재적 이해 상충 및 불확실한 세금 처리가 포함됩니다.
La Banque de Nouvelle-Écosse (BNS) a déposé un Free Writing Prospectus pour des titres seniors de série A liés au marché, auto-remboursables et à capital à risque, liés à la performance la plus faible parmi Dell Technologies (DELL), Intel (INTC) et Eli Lilly (LLY). Chaque note est émise en coupures de 1 000 $, devrait être prixée le 26 juin 2025 et réglée le 1er juillet 2025, avec une échéance prévue au 29 juin 2028, sauf rappel automatique anticipé.
Caractéristique de rappel automatique : si à la date de rappel annuelle (1er juillet 2026) l'action la moins performante clôture au prix de départ ou au-dessus, les investisseurs reçoivent la valeur nominale plus une prime de rappel ≥ 50 % (≥ 500 $), renonçant à tout gain supplémentaire.
Règlement à l’échéance (si non rappelé) :
- Scénario haussier : l’action la moins performante termine au-dessus de son prix de départ ; le paiement est de 1 000 $ plus 350 % du rendement du prix de cette action.
- Scénario stable : l’action la moins performante termine entre 50 % et 100 % du prix de départ ; le capital est remboursé.
- Scénario baissier : l’action la moins performante termine sous 50 % du prix de départ ; l’investisseur subit une perte au pair avec l’action, exposant à une perte de capital supérieure à 50 %, pouvant aller jusqu’à la totalité.
La valeur interne préliminaire est comprise entre 900 $ et 931,30 $ (90-93,13 % de la valeur nominale), reflétant les spreads des teneurs de marché et les coûts de couverture. Les notes ne versent pas d’intérêts périodiques, sont des obligations non garanties de BNS et ne bénéficient pas d’assurance FDIC ni de liquidité secondaire active. Scotia Capital Inc. agit en tant qu’agent de calcul ; Scotia Capital (USA) et Wells Fargo Securities distribuent le produit et perçoivent jusqu’à 2,575 % de commissions de vente.
Risques clés mis en avant incluent une perte totale en cas de baisse sous le seuil de 50 %, la dépendance à la performance de l’action la plus faible, le risque de crédit de BNS, des contraintes de liquidité, des conflits d’intérêts potentiels et une incertitude fiscale.
Die Bank of Nova Scotia (BNS) hat einen Free Writing Prospectus für Series A Senior Market-Linked Securities eingereicht, die automatisch kündbar sind und ein Kapitalverlustrisiko aufweisen. Diese Notes sind an die schlechteste Performance von Dell Technologies (DELL), Intel (INTC) und Eli Lilly (LLY) gekoppelt. Jede Note wird in Stückelungen von $1.000 ausgegeben, soll am 26. Juni 2025 bepreist werden und am 1. Juli 2025 abgewickelt werden, mit einer angegebenen Laufzeit bis zum 29. Juni 2028, sofern sie nicht vorher automatisch gekündigt wird.
Automatische Kündigungsfunktion: Wenn am einjährigen Kündigungstermin (1. Juli 2026) die Aktie mit der schlechtesten Performance auf oder über ihrem Startpreis schließt, erhalten Anleger den Nennwert zuzüglich einer ≥ 50 % Kündigungsprämie (≥ $500) und verzichten auf weitere Kursgewinne.
Auszahlung bei Fälligkeit (sofern nicht gekündigt):
- Bullishes Szenario: Die Aktie mit der schlechtesten Performance schließt über dem Startpreis; Auszahlung entspricht $1.000 plus 350 % der Kursrendite dieser Aktie.
- Seitwärts-Szenario: Die Aktie mit der schlechtesten Performance schließt zwischen 50 % und 100 % des Startpreises; das Kapital wird zurückgezahlt.
- Bärisches Szenario: Die Aktie mit der schlechtesten Performance schließt unter 50 % des Startpreises; der Anleger erleidet einen 1-zu-1-Verlust entsprechend der Aktienentwicklung, was zu einem Kapitalverlust von mehr als 50 % bis hin zum Totalverlust führen kann.
Der vorläufige innere Wert liegt bei $900 bis $931,30 (90-93,13 % des Nennwerts), unter Berücksichtigung von Händler-Spreads und Absicherungskosten. Die Notes zahlen keine periodischen Zinsen, sind unbesicherte Verbindlichkeiten von BNS und besitzen keine FDIC-Versicherung oder aktive Sekundärliquidität. Scotia Capital Inc. fungiert als Berechnungsstelle; Scotia Capital (USA) und Wells Fargo Securities vertreiben das Produkt und erhalten bis zu 2,575 % Verkaufskommissionen.
Wesentliche hervorgehobene Risiken umfassen vollständige Verluste unterhalb der 50 %-Schwelle, Abhängigkeit vom einzelnen schlechtesten Wertpapier, BNS-Kreditrisiko, Liquiditätsbeschränkungen, potenzielle Interessenkonflikte und unsichere steuerliche Behandlung.
- None.
- None.
Insights
TL;DR: High upside (350 %) and 50 % buffer, but full downside risk, no coupons, and estimated value only 90-93 % of par.
The term sheet offers investors leveraged equity exposure with a short one-year auto-call and an attractive ≥ 50 % call premium. The 350 % participation above par after three years is competitive versus peers. However, the structure concentrates risk in the single worst performer of three volatile equities. Once prices breach the 50 % threshold, losses are linear, exposing investors to > 50 % capital loss. The initial estimated value—up to 10 % below face—illustrates high embedded costs. No periodic coupons translate into negative carry, while illiquid secondary markets make exit costly. Credit exposure to BNS, though investment-grade, remains another layer of risk. Overall, risk/return is balanced; material impact to BNS’s financials is immaterial.
TL;DR: Product is niche and neutral for BNS; investors face concentrated downside, limited liquidity, and reinvestment risk.
From a risk-management lens, the note’s appeal rests on the 50 % downside buffer and the possibility of a quick auto-call. Yet buffer effectiveness relies on three highly correlated tech-healthcare names; historical shocks show simultaneous drawdowns are plausible. Absence of periodic coupons removes income diversification, while early call forces reinvestment at uncertain rates. The worst-of design creates path-dependency, and the calculation agent is an affiliate, raising conflict considerations. Given BNS’s large balance sheet, issuance size is unlikely to shift credit metrics; thus capital-markets impact is negligible. I view the disclosure as routine, with no directional signal on BNS shares.
Bank of Nova Scotia (BNS) ha presentato un Free Writing Prospectus per titoli senior di Serie A collegati al mercato, auto-richiabili e con capitale a rischio, legati al titolo con la peggiore performance tra Dell Technologies (DELL), Intel (INTC) e Eli Lilly (LLY). Ogni nota è emessa in tagli da $1.000, con prezzo previsto per il 26 giugno 2025 e regolamento il 1° luglio 2025, con scadenza dichiarata al 29 giugno 2028, salvo richiamo automatico anticipato.
Funzione di richiamo automatico: se alla data di richiamo annuale (1° luglio 2026) il titolo con la performance peggiore chiude al prezzo di partenza o sopra di esso, gli investitori ricevono il valore nominale più un premio di richiamo ≥ 50% (≥ $500), rinunciando a ulteriori guadagni.
Pagamento a scadenza (se non richiamata):
- Scenario rialzista: il titolo peggiore termina sopra il prezzo iniziale; il pagamento corrisponde a $1.000 più il 350% del rendimento del titolo.
- Scenario laterale: il titolo peggiore termina tra il 50% e il 100% del prezzo iniziale; il capitale viene restituito.
- Scenario ribassista: il titolo peggiore termina sotto il 50% del prezzo iniziale; l'investitore subisce una perdita pari alla performance negativa del titolo, con una perdita di capitale che può superare il 50% fino al totale.
Il valore interno preliminare è compreso tra $900 e $931,30 (90-93,13% del valore nominale), considerando spread dei dealer e costi di copertura. Le note non pagano interessi periodici, sono obbligazioni non garantite di BNS e non sono assicurate FDIC né presentano liquidità secondaria attiva. Scotia Capital Inc. agisce come agente di calcolo; Scotia Capital (USA) e Wells Fargo Securities distribuiscono il prodotto, percependo fino al 2,575% in commissioni di vendita.
Rischi chiave evidenziati includono la perdita totale al di sotto della soglia del 50%, la dipendenza dal titolo con la performance peggiore, il rischio di credito di BNS, limitazioni di liquidità, potenziali conflitti di interesse e incertezze fiscali.
Bank of Nova Scotia (BNS) ha presentado un Free Writing Prospectus para valores senior Serie A vinculados al mercado, auto-rellamables y con principal en riesgo, ligados al peor desempeño entre Dell Technologies (DELL), Intel (INTC) y Eli Lilly (LLY). Cada nota se emite en denominaciones de $1,000, con precio esperado para el 26 de junio de 2025 y liquidación el 1 de julio de 2025, con vencimiento declarado para el 29 de junio de 2028, salvo llamado automático anticipado.
Función de llamado automático: si en la fecha de llamado anual (1 de julio de 2026) la acción con peor desempeño cierra al precio inicial o por encima, los inversionistas reciben el valor nominal más una prima de llamado ≥ 50% (≥ $500), renunciando a cualquier ganancia adicional.
Pago al vencimiento (si no es llamado):
- Escenario alcista: el peor desempeño termina por encima del precio inicial; el pago es $1,000 más el 350% del retorno del precio de esa acción.
- Escenario lateral: el peor desempeño termina entre 50% y 100% del precio inicial; se devuelve el principal.
- Escenario bajista: el peor desempeño termina por debajo del 50% del precio inicial; el inversionista pierde a razón de 1 a 1 con la acción, exponiéndose a una pérdida de principal superior al 50%, hasta la totalidad.
El valor interno preliminar es entre $900 y $931.30 (90-93.13% del nominal), reflejando spreads de dealer y costos de cobertura. Las notas no pagan intereses periódicos, son obligaciones no garantizadas de BNS y no cuentan con seguro FDIC ni liquidez secundaria activa. Scotia Capital Inc. actúa como agente de cálculo; Scotia Capital (USA) y Wells Fargo Securities distribuyen el producto, recibiendo hasta 2.575% en comisiones de venta.
Riesgos clave destacados incluyen pérdida total bajo el umbral del 50%, dependencia del peor desempeño individual, riesgo crediticio de BNS, restricciones de liquidez, posibles conflictos de interés y tratamiento fiscal incierto.
Bank of Nova Scotia (BNS)는 Dell Technologies (DELL), Intel (INTC), Eli Lilly (LLY) 중 최저 실적 주식에 연동된 시리즈 A 선순위 시장 연계 증권에 대한 Free Writing Prospectus를 제출했습니다. 이 증권은 자동 콜 가능하며 원금 위험이 있는 노트입니다. 각 노트는 $1,000 단위로 발행되며, 2025년 6월 26일 가격 책정 예정이고 2025년 7월 1일 결제 예정이며, 만기는 2028년 6월 29일로 명시되어 있으나 조기 자동 콜될 수 있습니다.
자동 콜 기능: 1년 콜 날짜인 2026년 7월 1일에 최저 실적 주식이 시작 가격 이상으로 마감하면 투자자는 액면가에 50% 이상의 콜 프리미엄 (≥ $500)을 받으며 추가 상승 수익은 포기합니다.
만기 시 지급 (콜되지 않은 경우):
- 강세 시나리오: 최저 실적 주식이 시작가 이상으로 종료하면 $1,000에 해당 주식 가격 상승률의 350%를 더해 지급합니다.
- 횡보 시나리오: 최저 실적 주식이 시작가의 50%에서 100% 사이에 마감하면 원금이 반환됩니다.
- 약세 시나리오: 최저 실적 주식이 시작가의 50% 미만으로 종료하면 투자자는 주식과 1:1 손실을 입어 50% 이상 최대 전액까지 원금 손실 위험이 있습니다.
예비 내부 가치는 $900~$931.30 (액면가의 90~93.13%)로 딜러 스프레드 및 헤지 비용을 반영합니다. 노트는 정기 이자를 지급하지 않으며 BNS의 무담보 채무이고 FDIC 보험이나 활성 2차 유동성이 없습니다. Scotia Capital Inc.가 계산 대행을 하며, Scotia Capital (USA)와 Wells Fargo Securities가 제품을 유통하며 최대 2.575%의 판매 수수료를 받습니다.
주요 위험 요소로는 50% 이하 하락 시 전액 손실, 최저 실적 단일 주식 의존, BNS 신용 위험, 유동성 제한, 잠재적 이해 상충 및 불확실한 세금 처리가 포함됩니다.
La Banque de Nouvelle-Écosse (BNS) a déposé un Free Writing Prospectus pour des titres seniors de série A liés au marché, auto-remboursables et à capital à risque, liés à la performance la plus faible parmi Dell Technologies (DELL), Intel (INTC) et Eli Lilly (LLY). Chaque note est émise en coupures de 1 000 $, devrait être prixée le 26 juin 2025 et réglée le 1er juillet 2025, avec une échéance prévue au 29 juin 2028, sauf rappel automatique anticipé.
Caractéristique de rappel automatique : si à la date de rappel annuelle (1er juillet 2026) l'action la moins performante clôture au prix de départ ou au-dessus, les investisseurs reçoivent la valeur nominale plus une prime de rappel ≥ 50 % (≥ 500 $), renonçant à tout gain supplémentaire.
Règlement à l’échéance (si non rappelé) :
- Scénario haussier : l’action la moins performante termine au-dessus de son prix de départ ; le paiement est de 1 000 $ plus 350 % du rendement du prix de cette action.
- Scénario stable : l’action la moins performante termine entre 50 % et 100 % du prix de départ ; le capital est remboursé.
- Scénario baissier : l’action la moins performante termine sous 50 % du prix de départ ; l’investisseur subit une perte au pair avec l’action, exposant à une perte de capital supérieure à 50 %, pouvant aller jusqu’à la totalité.
La valeur interne préliminaire est comprise entre 900 $ et 931,30 $ (90-93,13 % de la valeur nominale), reflétant les spreads des teneurs de marché et les coûts de couverture. Les notes ne versent pas d’intérêts périodiques, sont des obligations non garanties de BNS et ne bénéficient pas d’assurance FDIC ni de liquidité secondaire active. Scotia Capital Inc. agit en tant qu’agent de calcul ; Scotia Capital (USA) et Wells Fargo Securities distribuent le produit et perçoivent jusqu’à 2,575 % de commissions de vente.
Risques clés mis en avant incluent une perte totale en cas de baisse sous le seuil de 50 %, la dépendance à la performance de l’action la plus faible, le risque de crédit de BNS, des contraintes de liquidité, des conflits d’intérêts potentiels et une incertitude fiscale.
Die Bank of Nova Scotia (BNS) hat einen Free Writing Prospectus für Series A Senior Market-Linked Securities eingereicht, die automatisch kündbar sind und ein Kapitalverlustrisiko aufweisen. Diese Notes sind an die schlechteste Performance von Dell Technologies (DELL), Intel (INTC) und Eli Lilly (LLY) gekoppelt. Jede Note wird in Stückelungen von $1.000 ausgegeben, soll am 26. Juni 2025 bepreist werden und am 1. Juli 2025 abgewickelt werden, mit einer angegebenen Laufzeit bis zum 29. Juni 2028, sofern sie nicht vorher automatisch gekündigt wird.
Automatische Kündigungsfunktion: Wenn am einjährigen Kündigungstermin (1. Juli 2026) die Aktie mit der schlechtesten Performance auf oder über ihrem Startpreis schließt, erhalten Anleger den Nennwert zuzüglich einer ≥ 50 % Kündigungsprämie (≥ $500) und verzichten auf weitere Kursgewinne.
Auszahlung bei Fälligkeit (sofern nicht gekündigt):
- Bullishes Szenario: Die Aktie mit der schlechtesten Performance schließt über dem Startpreis; Auszahlung entspricht $1.000 plus 350 % der Kursrendite dieser Aktie.
- Seitwärts-Szenario: Die Aktie mit der schlechtesten Performance schließt zwischen 50 % und 100 % des Startpreises; das Kapital wird zurückgezahlt.
- Bärisches Szenario: Die Aktie mit der schlechtesten Performance schließt unter 50 % des Startpreises; der Anleger erleidet einen 1-zu-1-Verlust entsprechend der Aktienentwicklung, was zu einem Kapitalverlust von mehr als 50 % bis hin zum Totalverlust führen kann.
Der vorläufige innere Wert liegt bei $900 bis $931,30 (90-93,13 % des Nennwerts), unter Berücksichtigung von Händler-Spreads und Absicherungskosten. Die Notes zahlen keine periodischen Zinsen, sind unbesicherte Verbindlichkeiten von BNS und besitzen keine FDIC-Versicherung oder aktive Sekundärliquidität. Scotia Capital Inc. fungiert als Berechnungsstelle; Scotia Capital (USA) und Wells Fargo Securities vertreiben das Produkt und erhalten bis zu 2,575 % Verkaufskommissionen.
Wesentliche hervorgehobene Risiken umfassen vollständige Verluste unterhalb der 50 %-Schwelle, Abhängigkeit vom einzelnen schlechtesten Wertpapier, BNS-Kreditrisiko, Liquiditätsbeschränkungen, potenzielle Interessenkonflikte und unsichere steuerliche Behandlung.
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Filed Pursuant to Rule 433 Dated June 20, 2025 Registration No. 333-282565 |
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The Bank of Nova Scotia Senior Note Program, Series A Equity Linked Securities |
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Market Linked Securities – Auto-Callable with Leveraged Upside Participation and Contingent Downside Principal at Risk Securities Linked to the Lowest Performing of the Class C common stock of Dell Technologies Inc., the common stock of Intel Corporation and the common stock of Eli Lilly and Company due June 29, 2028 Term Sheet to the Preliminary Pricing Supplement dated June 20, 2025 |
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Summary of Terms
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Issuer |
The Bank of Nova Scotia (the “Bank”) |
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Market Measures |
The Class C common stock of Dell Technologies Inc. (Bloomberg Ticker: DELL), the common stock of Intel Corporation (Bloomberg Ticker: INTC) and the common stock of Eli Lilly and Company (Bloomberg Ticker: LLY) (each referred to as an “Underlying Stock”, and collectively as the "Underlying Stocks"). |
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Pricing Date* |
June 26, 2025 |
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Issue Date* |
July 1, 2025 |
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Face Amount (Original Offering Price) |
$1,000 per security |
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Automatic Call Feature |
If the stock closing price of the lowest performing Underlying Stock on the call date is greater than or equal to its starting price, the securities will be automatically called and, on the call settlement date, you will be entitled to receive a cash payment per security in U.S. dollars equal to the face amount plus the call premium. |
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Call Date* |
July 1, 2026, subject to postponement |
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Call Settlement Date |
Three business days after the call date, subject to postponement |
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Call Premium |
At least 50.00% of the face amount, or at least $500.00 per $1,000 face amount of the securities (to be determined on the pricing date) |
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Maturity Payment Amount (per Security) |
If the securities are not automatically called, then on the stated maturity date, you will be entitled to receive a cash payment per security in U.S. dollars equal to: ●if the ending price of the lowest performing Underlying Stock is greater than its starting price: $1,000 + ($1,000 × underlying stock return of the lowest performing Underlying Stock × upside participation rate); ●if the ending price of the lowest performing Underlying Stock is less than or equal to its starting price and greater than or equal to its threshold price: $1,000; or ●if the ending price of the lowest performing Underlying Stock is less than its threshold price: $1,000 + ($1,000 × underlying stock return of the lowest performing Underlying Stock) |
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Final Calculation Day |
June 26, 2028, subject to postponement |
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Stated Maturity Date* |
June 29, 2028, subject to postponement |
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Lowest Performing Underlying Stock |
For the call date and the final calculation day, the “lowest performing Underlying Stock” will be the Underlying Stock with the lowest underlying stock return on that day. |
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Starting Price |
With respect to each Underlying Stock, its stock closing price on the pricing date |
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Ending Price |
The “ending price” of an Underlying Stock will be its stock closing price on the final calculation day. |
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Threshold Price |
With respect to each Underlying Stock, 50% of its starting price |
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Upside Participation Rate |
350% |
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Underlying Stock Return |
The percentage change of an Underlying Stock from its starting price to its stock closing price on the call date or on the final calculation day, as applicable, measured as follows: (stock closing price – starting price) / starting price |
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Calculation Agent |
Scotia Capital Inc., an affiliate of the Bank |
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Denominations |
$1,000 and any integral multiple of $1,000 |
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Agents** |
Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC (“WFS”). WFS will receive a discount of up to 2.575%; dealers, including Wells Fargo Advisors, LLC (“WFA”), may receive a selling concession of up to 2.00%, and WFA may receive a distribution expense fee of 0.075%. |
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CUSIP / ISIN |
06418VYJ7 / US06418VYJ78 |
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Material Canadian and U.S. Tax Consequences |
See the preliminary pricing supplement. |
* Subject to change.
** In respect of certain securities, we may pay a fee of up to $3.00 per security to selected securities dealers for marketing and other services in connection with the distribution of the securities to other securities dealers.
Hypothetical Payout Profile***
*** Assumes the call premium is equal to the minimum of call premium specified herein.
If the securities are automatically called, the positive return on the securities will be limited to the call premium, and you will not participate in any appreciation of the lowest performing Underlying Stock, which may be significant. If the securities are automatically called, you will no longer have the opportunity to participate in any appreciation of any Underlying Stock at the upside participation rate.
If the securities are not automatically called and the ending price of the lowest performing Underlying Stock is less than its threshold price, you will have full downside exposure to the decrease in the price of the lowest performing Underlying Stock from its starting price and will lose more than 50%, and possibly all, of the face amount of your securities at maturity.
If the securities priced today, the estimated value of the securities would be between $900.00 (90.00%) and $931.30 (93.13%) per $1,000 face amount. See “Estimated Value of the Securities” in the preliminary pricing supplement.
Preliminary pricing supplement:
http://www.sec.gov/Archives/edgar/data/9631/000183988225034027/bns_424b2-18102.htm
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The securities have complex features and investing in the securities involves risks not associated with an investment in conventional debt securities. See “Selected Risk Considerations” in this term sheet, “Selected Risk Considerations” in the preliminary pricing supplement and “Risk Factors” in the product supplement, prospectus supplement and prospectus. This introductory term sheet does not provide all the information that an investor should consider prior to making an investment decision. This term sheet should be read in conjunction with the preliminary pricing supplement, product supplement, prospectus supplement, and prospectus. NOT A BANK DEPOSIT AND NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY |
Selected Risk Considerations
The risks set forth below are discussed in detail in “Selected Risk Considerations” in the preliminary pricing supplement and “Risk Factors” in the product supplement, prospectus supplement and prospectus. Please review those risk disclosures carefully.
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Risks Relating To The Securities Generally ●If The Securities Are Not Automatically Called And The Ending Price Of The Lowest Performing Underlying Stock Is Less Than Its Threshold Price, You Will Lose Some, And Possibly All, Of The Face Amount Of Your Securities At Stated Maturity. ●The Securities Are Subject To The Full Risks Of Each Underlying Stock And Will Be Negatively Affected If Any Underlying Stock Performs Poorly, Even If Another Underlying Stock Performs Favorably. ●Your Return On The Securities Will Depend Solely On The Performance Of The Underlying Stock That Is The Lowest Performing Underlying Stock On Each Calculation Day, And You Will Not Benefit In Any Way From The Performance Of A Better Performing Underlying Stock. ●You Will Be Subject To Risks Resulting From The Relationship Among The Underlying Stocks. ●No Periodic Interest Will Be Paid On The Securities. ●If The Securities Are Automatically Called, Your Return Will Be Limited to the Call Premium. ●You Will Be Subject To Reinvestment Risk. ●The Call Settlement Date Or The Stated Maturity Date May Be Postponed If The Call Date Or The Final Calculation Day Is Postponed. Risks Relating To An Investment In the Bank’s Debt Securities, Including The Securities ●Your Investment Is Subject To The Credit Risk Of The Bank. Risks Relating To The Estimated Value Of The Securities And Any Secondary Market ●The Inclusion Of Dealer Spread And Projected Profit From Hedging In The Original Offering Price Is Likely To Adversely Affect Secondary Market Prices. ●The Bank's Estimated Value Of The Securities Will Be Lower Than The Original Offering Price Of The Securities. ●The Bank's Estimated Value Does Not Represent Future Values Of The Securities And May Differ From Others' Estimates. ●The Bank's Estimated Value Is Not Determined By Reference To Credit Spreads For Our Conventional Fixed-Rate Debt. ●If The Price Of The Underlying Stocks Change, The Market Value Of Your Securities May Not Change In The Same Manner. ●The Price At Which The Securities May Be Sold Prior To Maturity Will Depend On A Number Of Factors And May Be Substantially Less Than The Amount For Which They Were Originally Purchased. ●The Securities Lack Liquidity. |
Risks Relating To The Underlying Stocks ●The Securities Will Be Subject To Single Stock Risk. ●Investing In The Securities Is Not The Same As Investing In The Underlying Stocks. ●Historical Values Of A Market Measure Should Not Be Taken As An Indication Of The Future Performance Of Such Market Measure During The Term Of The Securities. ●The Securities May Become Linked To The Common Stock Of A Company Other Than An Original Underlying Stock Issuer. ●We, The Agents And Our Or Their Respective Affiliates Cannot Control Actions By An Underlying Stock Issuer. ●None Of Us, The Agents Or Our Or Their Respective Affiliates Have Any Affiliation With Any Underlying Stock Issuer Or Have Independently Verified Their Public Disclosure Of Information. ●You Have Limited Anti-dilution Protection. Risks Relating To Hedging Activities And Conflicts Of Interest ●A Participating Dealer Or Its Affiliates May Realize Hedging Profits Projected By Its Proprietary Pricing Models In Addition To Any Selling Concession And/Or Any Distribution Expense Fee, Creating A Further Incentive For The Participating Dealer To Sell The Securities To You. ●Hedging Activities By The Bank And/Or The Agents 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. ●Market Activities By The Bank Or The Agents For Their Own Respective Accounts Or For Their Respective Clients Could Negatively Impact Investors In The Securities. ●The Bank, The Agents And Their Respective Affiliates Regularly Provide Services To, Or Otherwise Have Business Relationships With, A Broad Client Base, Which Has Included And May Include Issuers Of An Underlying Stock, The Sponsor Or Investment Advisor For A Fund And/Or The Issuers Of Securities Included In An Index Or Held By A Fund. ●Other Investors In The Securities May Not Have The Same Interests As You. ●There Are Potential Conflicts Of Interest Between You And The Calculation Agent. Risks Relating To Canadian And U.S. Federal Income Taxation ●The Tax Consequences Of An Investment In The Securities Are Unclear. Significant aspects of the tax treatment of the securities are uncertain. You should consult your tax advisor about your tax situation. See “Canadian Income Tax Consequences” and “U.S. Federal Income Tax Consequences” in the preliminary pricing supplement. |
The Bank has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Bank has filed with the SEC for more complete information about the Bank and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Bank, any Underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling your financial advisor or by calling Wells Fargo Securities, LLC at 866-346-7732.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
