[FWP] Bank of Nova Scotia Free Writing Prospectus
Bank of Nova Scotia (BNS) has filed a Free Writing Prospectus for a new structured product—Accelerated Return Notes (ARNs)—linked to a diversified international equity index basket. The $10-denominated notes mature in roughly 14 months and reference six major indices: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei 225 (20%), Swiss Market Index (7.5%), S&P/ASX 200 (7.5%), and FTSE China 50 (5%).
Payout mechanics: • Investors receive 3-to-1 leveraged upside exposure to any basket appreciation, capped between $11.40 and $11.80 (14%-18% maximum return). • Downside exposure is linear and uncapped; a 1-for-1 loss in the basket can wipe out the entire principal. No interim coupon is paid.
Key structural features:
- Capped Value: Final value cannot exceed the stated range, limiting participation once the basket rises ~4.7-5.3%.
- Credit exposure: Payments depend on BNS’s ability to pay; if the bank defaults, investors could lose all capital regardless of market performance.
- Initial estimated value: Will be below the public offering price, reflecting fees, hedging costs, and issuer margin.
- Liquidity: Notes are not exchange-listed; secondary market, if any, may trade at prices below offering price and model value.
Investor profile: Suitable only for investors who expect modest international equity gains within 14 months, are comfortable with total downside risk, and prefer short-term, leveraged yet capped exposure over direct equity ownership.
La Bank of Nova Scotia (BNS) ha presentato un Free Writing Prospectus per un nuovo prodotto strutturato—Accelerated Return Notes (ARNs)—collegato a un paniere diversificato di indici azionari internazionali. Le note denominate in 10 dollari scadono in circa 14 mesi e fanno riferimento a sei indici principali: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei 225 (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) e FTSE China 50 (5%).
Meccanismo di pagamento: • Gli investitori ricevono un'esposizione al rialzo con leva 3:1 sull’apprezzamento del paniere, limitata tra 11,40 e 11,80 dollari (rendimento massimo dal 14% al 18%). • L’esposizione al ribasso è lineare e senza limiti; una perdita 1:1 nel paniere può azzerare il capitale. Non viene corrisposto alcun coupon intermedio.
Caratteristiche strutturali principali:
- Valore massimo limitato: Il valore finale non può superare l’intervallo indicato, limitando la partecipazione una volta che il paniere sale di circa il 4,7-5,3%.
- Rischio di credito: I pagamenti dipendono dalla capacità di BNS di adempiere; in caso di default della banca, gli investitori potrebbero perdere tutto il capitale indipendentemente dalla performance di mercato.
- Valore iniziale stimato: Sarà inferiore al prezzo di offerta pubblica, riflettendo commissioni, costi di copertura e margine dell’emittente.
- Liquidità: Le note non sono quotate in borsa; il mercato secondario, se presente, potrebbe negoziare a prezzi inferiori al prezzo di offerta e al valore modello.
Profilo dell’investitore: Adatto solo a investitori che prevedono modesti guadagni azionari internazionali entro 14 mesi, sono disposti ad accettare il rischio totale di perdita e preferiscono un’esposizione a breve termine, con leva ma limitata, rispetto al possesso diretto di azioni.
Bank of Nova Scotia (BNS) ha presentado un Free Writing Prospectus para un nuevo producto estructurado—Notas de Retorno Acelerado (ARNs)—vinculado a una cesta diversificada de índices bursátiles internacionales. Las notas denominadas en $10 vencen en aproximadamente 14 meses y hacen referencia a seis índices principales: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei 225 (20%), Swiss Market Index (7.5%), S&P/ASX 200 (7.5%) y FTSE China 50 (5%).
Mecánica de pago: • Los inversionistas reciben una exposición al alza apalancada 3 a 1 sobre la apreciación de la cesta, con un tope entre $11.40 y $11.80 (retorno máximo del 14% al 18%). • La exposición a la baja es lineal y sin límite; una pérdida 1 a 1 en la cesta puede eliminar todo el principal. No se paga cupón intermedio.
Características estructurales clave:
- Valor máximo limitado: El valor final no puede exceder el rango indicado, limitando la participación cuando la cesta sube aproximadamente entre 4.7% y 5.3%.
- Exposición crediticia: Los pagos dependen de la capacidad de BNS para pagar; si el banco incumple, los inversionistas podrían perder todo el capital sin importar el desempeño del mercado.
- Valor inicial estimado: Será inferior al precio de oferta pública, reflejando comisiones, costos de cobertura y margen del emisor.
- Liquidez: Las notas no están listadas en bolsa; el mercado secundario, si existe, podría negociar a precios por debajo del precio de oferta y del valor modelo.
Perfil del inversionista: Adecuado solo para inversionistas que esperan ganancias modestas en acciones internacionales dentro de 14 meses, están cómodos con el riesgo total a la baja y prefieren una exposición apalancada pero limitada a corto plazo en lugar de la propiedad directa de acciones.
뱅크 오브 노바 스코샤(BNS)는 다양한 국제 주가지수 바스켓에 연동된 새로운 구조화 상품인 가속 수익 노트(Accelerated Return Notes, ARNs)에 대한 Free Writing Prospectus를 제출했습니다. 10달러 단위로 표시된 이 노트는 약 14개월 만기이며, 여섯 개 주요 지수를 참조합니다: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei 225 (20%), Swiss Market Index (7.5%), S&P/ASX 200 (7.5%), FTSE China 50 (5%).
수익 구조: • 투자자는 바스켓 상승에 대해 3배 레버리지로 수익을 얻으며, 수익은 11.40달러에서 11.80달러 사이로 상한이 정해져 있습니다 (최대 14%-18% 수익). • 하락 위험은 선형적이며 제한이 없고, 바스켓이 1:1로 하락하면 원금 전액 손실 가능성이 있습니다. 중간 쿠폰은 지급되지 않습니다.
주요 구조적 특징:
- 상한가 제한: 최종 가치는 명시된 범위를 초과할 수 없으며, 바스켓이 약 4.7-5.3% 상승하면 참여가 제한됩니다.
- 신용 위험: 지급은 BNS의 지급 능력에 따라 달라지며, 은행이 디폴트할 경우 시장 성과와 관계없이 투자자는 원금 전액을 잃을 수 있습니다.
- 초기 예상 가치: 수수료, 헤지 비용 및 발행자 마진을 반영하여 공모가보다 낮을 것입니다.
- 유동성: 노트는 거래소에 상장되어 있지 않으며, 2차 시장이 존재할 경우 공모가 및 모델 가치보다 낮은 가격에 거래될 수 있습니다.
투자자 프로필: 14개월 내에 국제 주식의 소폭 상승을 예상하고, 전액 손실 위험을 감수할 수 있으며, 직접 주식 보유보다 단기적이고 레버리지 있으면서 상한이 있는 노출을 선호하는 투자자에게 적합합니다.
La Bank of Nova Scotia (BNS) a déposé un Free Writing Prospectus pour un nouveau produit structuré – les Accelerated Return Notes (ARNs) – liés à un panier diversifié d’indices boursiers internationaux. Les notes, libellées en 10 $, arrivent à échéance dans environ 14 mois et référencent six indices majeurs : EURO STOXX 50 (40 %), FTSE 100 (20 %), Nikkei 225 (20 %), Swiss Market Index (7,5 %), S&P/ASX 200 (7,5 %) et FTSE China 50 (5 %).
Mécanisme de paiement : • Les investisseurs bénéficient d’une exposition haussière à effet de levier 3:1 sur l’appréciation du panier, plafonnée entre 11,40 $ et 11,80 $ (rendement maximal de 14 % à 18 %). • L’exposition baissière est linéaire et illimitée ; une perte 1:1 sur le panier peut entraîner une perte totale du capital. Aucun coupon intermédiaire n’est versé.
Caractéristiques structurelles clés :
- Valeur plafonnée : La valeur finale ne peut pas dépasser la fourchette indiquée, limitant la participation dès que le panier progresse d’environ 4,7 % à 5,3 %.
- Risque de crédit : Les paiements dépendent de la capacité de BNS à honorer ses engagements ; en cas de défaut de la banque, les investisseurs pourraient perdre la totalité de leur capital, indépendamment de la performance du marché.
- Valeur initiale estimée : Elle sera inférieure au prix public d’offre, reflétant les frais, les coûts de couverture et la marge de l’émetteur.
- Liquidité : Les notes ne sont pas cotées en bourse ; le marché secondaire, s’il existe, pourrait négocier à des prix inférieurs au prix d’offre et à la valeur modèle.
Profil de l’investisseur : Convient uniquement aux investisseurs qui anticipent des gains modestes sur les actions internationales dans les 14 mois, qui acceptent un risque total à la baisse et qui préfèrent une exposition à court terme, à effet de levier mais plafonnée, plutôt que la détention directe d’actions.
Die Bank of Nova Scotia (BNS) hat ein Free Writing Prospectus für ein neues strukturiertes Produkt – Accelerated Return Notes (ARNs) – eingereicht, das an einen diversifizierten internationalen Aktienindexkorb gekoppelt ist. Die auf 10 USD lautenden Notes haben eine Laufzeit von etwa 14 Monaten und beziehen sich auf sechs Hauptindizes: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei 225 (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) und FTSE China 50 (5%).
Auszahlungsmechanismus: • Investoren erhalten eine 3-fach gehebelte Aufwärtsbeteiligung an der Wertsteigerung des Korbs, begrenzt zwischen 11,40 und 11,80 USD (maximale Rendite 14%-18%). • Das Abwärtsrisiko ist linear und unbegrenzt; ein 1:1-Verlust im Korb kann das gesamte Kapital vernichten. Es werden keine Zwischenkupons gezahlt.
Wesentliche strukturelle Merkmale:
- Begrenzter Wert: Der Endwert kann den angegebenen Bereich nicht überschreiten, wodurch die Partizipation bei einem Anstieg des Korbs um etwa 4,7-5,3% begrenzt wird.
- Kreditrisiko: Zahlungen hängen von der Zahlungsfähigkeit der BNS ab; bei einem Ausfall der Bank könnten Investoren ihr gesamtes Kapital verlieren, unabhängig von der Marktperformance.
- Geschätzter Anfangswert: Liegt unter dem öffentlichen Ausgabepreis und berücksichtigt Gebühren, Absicherungskosten und die Marge des Emittenten.
- Liquidität: Die Notes sind nicht börsennotiert; ein Sekundärmarkt, falls vorhanden, könnte zu Preisen unter dem Ausgabepreis und dem Modellwert handeln.
Investorprofil: Geeignet nur für Anleger, die innerhalb von 14 Monaten moderate internationale Aktiengewinne erwarten, bereit sind, das volle Abwärtsrisiko zu tragen, und eine kurzfristige, gehebelte, aber begrenzte Beteiligung gegenüber direktem Aktienbesitz bevorzugen.
- 3-to-1 leveraged upside offers enhanced participation in modest equity gains over a short 14-month horizon.
- Diversification across six major international indices reduces single-market concentration.
- Capped Value up to 18% provides clear payoff visibility for investors targeting limited upside.
- Full principal at risk: 1-for-1 downside exposure can lead to 100% loss.
- Upside capped at $11.80, limiting returns even if basket outperforms.
- Credit risk of BNS: notes are unsecured debt; insolvency would void payments.
- Initial estimated value below issue price, embedding fees and reducing intrinsic value at inception.
- No exchange listing may result in illiquidity and pricing discounts in secondary trading.
Insights
TL;DR – Short-term 3× upside play, but capped at ~18% and carries full credit & market risk.
The ARN gives leveraged participation in a globally diversified basket, which can be attractive in a range-bound or mildly bullish environment. However, the cap effectively limits payoff once the basket rises roughly 5%, a level that can easily be surpassed in volatile markets. Investors also pay an implicit spread: the issue price exceeds the initial estimated value, eroding risk-adjusted return.
Because downside is 1-for-1, the risk-reward is asymmetric in the issuer’s favor: BNS borrows at near-zero coupon while only giving up 14-18% of upside. The lack of listing and potential wide bid/ask spreads further reduce liquidity. From a portfolio standpoint, the product may act as a tactical substitute for a short-dated call spread, but sophisticated investors could replicate exposure more cheaply through options.
TL;DR – Return entirely contingent on BNS credit; investment behaves like unsecured debt.
Although BNS is a highly rated Canadian bank, these ARNs are senior unsecured obligations. Any deterioration in BNS’s credit profile directly affects note valuation. Given recent tightening bank margins and regulatory scrutiny, tail-risk should not be ignored—particularly by U.S. retail investors unfamiliar with Canadian bail-in regimes. Investors receive no additional credit spread compensation beyond the capped payoff, leaving them exposed to downside with limited upside. From a credit perspective the structure is attractive for BNS, less so for noteholders.
La Bank of Nova Scotia (BNS) ha presentato un Free Writing Prospectus per un nuovo prodotto strutturato—Accelerated Return Notes (ARNs)—collegato a un paniere diversificato di indici azionari internazionali. Le note denominate in 10 dollari scadono in circa 14 mesi e fanno riferimento a sei indici principali: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei 225 (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) e FTSE China 50 (5%).
Meccanismo di pagamento: • Gli investitori ricevono un'esposizione al rialzo con leva 3:1 sull’apprezzamento del paniere, limitata tra 11,40 e 11,80 dollari (rendimento massimo dal 14% al 18%). • L’esposizione al ribasso è lineare e senza limiti; una perdita 1:1 nel paniere può azzerare il capitale. Non viene corrisposto alcun coupon intermedio.
Caratteristiche strutturali principali:
- Valore massimo limitato: Il valore finale non può superare l’intervallo indicato, limitando la partecipazione una volta che il paniere sale di circa il 4,7-5,3%.
- Rischio di credito: I pagamenti dipendono dalla capacità di BNS di adempiere; in caso di default della banca, gli investitori potrebbero perdere tutto il capitale indipendentemente dalla performance di mercato.
- Valore iniziale stimato: Sarà inferiore al prezzo di offerta pubblica, riflettendo commissioni, costi di copertura e margine dell’emittente.
- Liquidità: Le note non sono quotate in borsa; il mercato secondario, se presente, potrebbe negoziare a prezzi inferiori al prezzo di offerta e al valore modello.
Profilo dell’investitore: Adatto solo a investitori che prevedono modesti guadagni azionari internazionali entro 14 mesi, sono disposti ad accettare il rischio totale di perdita e preferiscono un’esposizione a breve termine, con leva ma limitata, rispetto al possesso diretto di azioni.
Bank of Nova Scotia (BNS) ha presentado un Free Writing Prospectus para un nuevo producto estructurado—Notas de Retorno Acelerado (ARNs)—vinculado a una cesta diversificada de índices bursátiles internacionales. Las notas denominadas en $10 vencen en aproximadamente 14 meses y hacen referencia a seis índices principales: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei 225 (20%), Swiss Market Index (7.5%), S&P/ASX 200 (7.5%) y FTSE China 50 (5%).
Mecánica de pago: • Los inversionistas reciben una exposición al alza apalancada 3 a 1 sobre la apreciación de la cesta, con un tope entre $11.40 y $11.80 (retorno máximo del 14% al 18%). • La exposición a la baja es lineal y sin límite; una pérdida 1 a 1 en la cesta puede eliminar todo el principal. No se paga cupón intermedio.
Características estructurales clave:
- Valor máximo limitado: El valor final no puede exceder el rango indicado, limitando la participación cuando la cesta sube aproximadamente entre 4.7% y 5.3%.
- Exposición crediticia: Los pagos dependen de la capacidad de BNS para pagar; si el banco incumple, los inversionistas podrían perder todo el capital sin importar el desempeño del mercado.
- Valor inicial estimado: Será inferior al precio de oferta pública, reflejando comisiones, costos de cobertura y margen del emisor.
- Liquidez: Las notas no están listadas en bolsa; el mercado secundario, si existe, podría negociar a precios por debajo del precio de oferta y del valor modelo.
Perfil del inversionista: Adecuado solo para inversionistas que esperan ganancias modestas en acciones internacionales dentro de 14 meses, están cómodos con el riesgo total a la baja y prefieren una exposición apalancada pero limitada a corto plazo en lugar de la propiedad directa de acciones.
뱅크 오브 노바 스코샤(BNS)는 다양한 국제 주가지수 바스켓에 연동된 새로운 구조화 상품인 가속 수익 노트(Accelerated Return Notes, ARNs)에 대한 Free Writing Prospectus를 제출했습니다. 10달러 단위로 표시된 이 노트는 약 14개월 만기이며, 여섯 개 주요 지수를 참조합니다: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei 225 (20%), Swiss Market Index (7.5%), S&P/ASX 200 (7.5%), FTSE China 50 (5%).
수익 구조: • 투자자는 바스켓 상승에 대해 3배 레버리지로 수익을 얻으며, 수익은 11.40달러에서 11.80달러 사이로 상한이 정해져 있습니다 (최대 14%-18% 수익). • 하락 위험은 선형적이며 제한이 없고, 바스켓이 1:1로 하락하면 원금 전액 손실 가능성이 있습니다. 중간 쿠폰은 지급되지 않습니다.
주요 구조적 특징:
- 상한가 제한: 최종 가치는 명시된 범위를 초과할 수 없으며, 바스켓이 약 4.7-5.3% 상승하면 참여가 제한됩니다.
- 신용 위험: 지급은 BNS의 지급 능력에 따라 달라지며, 은행이 디폴트할 경우 시장 성과와 관계없이 투자자는 원금 전액을 잃을 수 있습니다.
- 초기 예상 가치: 수수료, 헤지 비용 및 발행자 마진을 반영하여 공모가보다 낮을 것입니다.
- 유동성: 노트는 거래소에 상장되어 있지 않으며, 2차 시장이 존재할 경우 공모가 및 모델 가치보다 낮은 가격에 거래될 수 있습니다.
투자자 프로필: 14개월 내에 국제 주식의 소폭 상승을 예상하고, 전액 손실 위험을 감수할 수 있으며, 직접 주식 보유보다 단기적이고 레버리지 있으면서 상한이 있는 노출을 선호하는 투자자에게 적합합니다.
La Bank of Nova Scotia (BNS) a déposé un Free Writing Prospectus pour un nouveau produit structuré – les Accelerated Return Notes (ARNs) – liés à un panier diversifié d’indices boursiers internationaux. Les notes, libellées en 10 $, arrivent à échéance dans environ 14 mois et référencent six indices majeurs : EURO STOXX 50 (40 %), FTSE 100 (20 %), Nikkei 225 (20 %), Swiss Market Index (7,5 %), S&P/ASX 200 (7,5 %) et FTSE China 50 (5 %).
Mécanisme de paiement : • Les investisseurs bénéficient d’une exposition haussière à effet de levier 3:1 sur l’appréciation du panier, plafonnée entre 11,40 $ et 11,80 $ (rendement maximal de 14 % à 18 %). • L’exposition baissière est linéaire et illimitée ; une perte 1:1 sur le panier peut entraîner une perte totale du capital. Aucun coupon intermédiaire n’est versé.
Caractéristiques structurelles clés :
- Valeur plafonnée : La valeur finale ne peut pas dépasser la fourchette indiquée, limitant la participation dès que le panier progresse d’environ 4,7 % à 5,3 %.
- Risque de crédit : Les paiements dépendent de la capacité de BNS à honorer ses engagements ; en cas de défaut de la banque, les investisseurs pourraient perdre la totalité de leur capital, indépendamment de la performance du marché.
- Valeur initiale estimée : Elle sera inférieure au prix public d’offre, reflétant les frais, les coûts de couverture et la marge de l’émetteur.
- Liquidité : Les notes ne sont pas cotées en bourse ; le marché secondaire, s’il existe, pourrait négocier à des prix inférieurs au prix d’offre et à la valeur modèle.
Profil de l’investisseur : Convient uniquement aux investisseurs qui anticipent des gains modestes sur les actions internationales dans les 14 mois, qui acceptent un risque total à la baisse et qui préfèrent une exposition à court terme, à effet de levier mais plafonnée, plutôt que la détention directe d’actions.
Die Bank of Nova Scotia (BNS) hat ein Free Writing Prospectus für ein neues strukturiertes Produkt – Accelerated Return Notes (ARNs) – eingereicht, das an einen diversifizierten internationalen Aktienindexkorb gekoppelt ist. Die auf 10 USD lautenden Notes haben eine Laufzeit von etwa 14 Monaten und beziehen sich auf sechs Hauptindizes: EURO STOXX 50 (40%), FTSE 100 (20%), Nikkei 225 (20%), Swiss Market Index (7,5%), S&P/ASX 200 (7,5%) und FTSE China 50 (5%).
Auszahlungsmechanismus: • Investoren erhalten eine 3-fach gehebelte Aufwärtsbeteiligung an der Wertsteigerung des Korbs, begrenzt zwischen 11,40 und 11,80 USD (maximale Rendite 14%-18%). • Das Abwärtsrisiko ist linear und unbegrenzt; ein 1:1-Verlust im Korb kann das gesamte Kapital vernichten. Es werden keine Zwischenkupons gezahlt.
Wesentliche strukturelle Merkmale:
- Begrenzter Wert: Der Endwert kann den angegebenen Bereich nicht überschreiten, wodurch die Partizipation bei einem Anstieg des Korbs um etwa 4,7-5,3% begrenzt wird.
- Kreditrisiko: Zahlungen hängen von der Zahlungsfähigkeit der BNS ab; bei einem Ausfall der Bank könnten Investoren ihr gesamtes Kapital verlieren, unabhängig von der Marktperformance.
- Geschätzter Anfangswert: Liegt unter dem öffentlichen Ausgabepreis und berücksichtigt Gebühren, Absicherungskosten und die Marge des Emittenten.
- Liquidität: Die Notes sind nicht börsennotiert; ein Sekundärmarkt, falls vorhanden, könnte zu Preisen unter dem Ausgabepreis und dem Modellwert handeln.
Investorprofil: Geeignet nur für Anleger, die innerhalb von 14 Monaten moderate internationale Aktiengewinne erwarten, bereit sind, das volle Abwärtsrisiko zu tragen, und eine kurzfristige, gehebelte, aber begrenzte Beteiligung gegenüber direktem Aktienbesitz bevorzugen.
Filed Pursuant to Rule 433
Registration Statement No. 333-282565
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ACCELERATED RETURN NOTES® (ARNs®) |
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Accelerated Return Notes® Linked to an International Equity Index Basket |
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 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 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% $10.00 0.00% 2.00% $10.60 6.00% 4.00% $11.20 12.00% 5.34% $11.60(2) 16.00% 10.00% $11.60 16.00% 20.00% $11.60 16.00% 30.00% $11.60 16.00% 40.00% $11.60 16.00% 50.00% $11.60 16.00%
(1)The Redemption Amount per unit cannot exceed the hypothetical Capped 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 14 months |
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Market Measure |
An international equity index basket comprised of the EURO STOXX 50® Index (Bloomberg symbol: “SX5E”), the FTSE® 100 Index (Bloomberg symbol: “UKX”), the Nikkei Stock Average Index (Bloomberg symbol: “NKY”), the Swiss Market Index® (Bloomberg symbol: “SMI”), the S&P/ASX 200 Index (Bloomberg symbol: “AS51”) and the FTSE® China 50 Index (Bloomberg symbol: “XIN0I”) (each, a “Basket Component”). The EURO STOXX 50® Index will be given an initial weight of 40.00%, each of the FTSE® 100 Index and the Nikkei Stock Average Index will be given an initial weight of 20.00%, each of the Swiss Market Index® and the S&P/ASX 200 Index will be given an initial weight of 7.50% and the FTSE® China 50 Index will be given an initial weight of 5.00%. |
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Payout Profile at Maturity |
●3-to-1 leveraged upside exposure to increases in the Market Measure, subject to the Capped Value ●1-to-1 downside exposure to decreases in the Market Measure, with up to 100% of your investment at risk |
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Capped Value |
[$11.40 to $11.80] per unit, a [14.00% to 18.00%] return over the principal amount, to be determined on the pricing date |
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Investment Considerations |
This investment is designed for investors who anticipate that the Market Measure will increase moderately over the term of the notes and are willing to accept a capped return, take full downside risk and forgo interim interest payments. |
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Preliminary Offering Documents |
http://www.sec.gov/Archives/edgar/data/9631/000183988225036027/bns_fwp-18623.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: ●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. ●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. ●Your investment return is limited to the return represented by the Capped Value and may be less than that of a comparable investment directly in the stocks included in the Basket Components. ●Changes in the level of one of the Basket Components may be offset by changes in the levels of the other Basket Components. ●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 included in the Basket Components and you will not be entitled to receive securities or dividends or other distributions by the issuers of the securities included in the Basket Components. ●Your return on the notes may be affected by factors affecting the international securities markets, specifically changes in the countries represented by the Basket Components. In addition, you will not obtain the benefit of any increase in the value of the currencies in which the securities in the Basket Components trade against the U.S. dollar which you would have received if you had owned the securities in the Basket Components during the term of your notes, although the value of the Basket may be adversely affected by general exchange rate movements in the market. ●Certain United States executive orders could adversely affect your investment in the notes. 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 indices comprise the BNS Accelerated Return Notes basket?
How much can I earn on the BNS ARNs?
What is the downside risk of investing in these ARNs?
Do the BNS ARNs pay periodic interest or coupons?
Is there secondary market liquidity for BNS ARNs?
How does BNS credit quality affect the ARNs?
