[FWP] Bank of Nova Scotia Free Writing Prospectus
Bank of Nova Scotia (BNS) plans to issue “Buffered Performance Leveraged Upside Securities” (Buffered PLUS) linked to the EURO STOXX 50® Index. The senior unsecured notes carry $1,000 stated principal per unit, price at par on 22 Jul 2025, and mature on 3 Feb 2028. Investors receive no periodic interest; returns are determined entirely at maturity.
Upside mechanics: the notes offer a 200% leverage on any positive index performance, but gains are capped at 32.00%, limiting maximum payment to $1,320. Downside protection: the first 15% decline is buffered; if the index ends ≤15% below its initial level, investors still receive full principal. Beyond that buffer, holders lose 1% of principal for each additional 1% decline, exposing them to losses of up to 85%.
Key structural features and risks: • No listing or secondary-market obligation, so liquidity may be limited. • The issuer’s initial estimated value (≈$930–$960) sits below issue price, reflecting embedded fees (≈$30 per unit) and hedging costs. • All payments depend on BNS’s creditworthiness. • The payout references only the index level on the single valuation date (31 Jan 2028); interim movements are irrelevant. • Investors face typical structured-note risks—including market, currency (euro-zone equities in USD terms), tax uncertainty, and conflicts arising from BNS/SCUSA hedging activities.
In short, the Buffered PLUS combine moderate downside cushioning with leveraged yet capped upside. They suit investors with a moderately bullish 2½-year view on the EURO STOXX 50 who can tolerate principal risk, illiquidity, and issuer credit exposure.
La Bank of Nova Scotia (BNS) prevede di emettere "Buffered Performance Leveraged Upside Securities" (Buffered PLUS) collegati all'indice EURO STOXX 50®. I titoli senior non garantiti hanno un valore nominale di 1.000 $ per unità, prezzo pari al valore nominale il 22 luglio 2025, e scadenza il 3 febbraio 2028. Gli investitori non ricevono interessi periodici; i rendimenti sono determinati esclusivamente alla scadenza.
Meccanismo di rendimento positivo: i titoli offrono una leva del 200% su qualsiasi performance positiva dell'indice, ma i guadagni sono limitati a un massimo del 32,00%, con un pagamento massimo di 1.320 $. Protezione dal ribasso: il primo calo del 15% è coperto; se l'indice termina ≤15% sotto il livello iniziale, gli investitori ricevono comunque il capitale pieno. Oltre questa soglia, gli investitori perdono l'1% del capitale per ogni ulteriore 1% di calo, con perdite fino all'85%.
Caratteristiche strutturali e rischi principali: • Nessun obbligo di quotazione o mercato secondario, quindi la liquidità potrebbe essere limitata. • Il valore stimato iniziale dell'emittente (≈930–960 $) è inferiore al prezzo di emissione, riflettendo costi incorporati (≈30 $ per unità) e spese di copertura. • Tutti i pagamenti dipendono dalla solidità creditizia di BNS. • Il pagamento si basa esclusivamente sul livello dell'indice alla data di valutazione unica (31 gennaio 2028); i movimenti intermedi non influenzano il risultato. • Gli investitori affrontano rischi tipici delle note strutturate, inclusi rischi di mercato, di valuta (azioni dell’area euro in termini di USD), incertezze fiscali e conflitti derivanti dalle attività di copertura di BNS/SCUSA.
In sintesi, i Buffered PLUS combinano una moderata protezione dal ribasso con un potenziale rialzo amplificato ma limitato. Sono adatti a investitori con una visione moderatamente rialzista di 2 anni e mezzo sull'EURO STOXX 50, disposti ad accettare il rischio sul capitale, la scarsa liquidità e l'esposizione al rischio emittente.
Bank of Nova Scotia (BNS) planea emitir “Buffered Performance Leveraged Upside Securities” (Buffered PLUS) vinculados al índice EURO STOXX 50®. Los bonos senior no garantizados tienen un principal nominal de 1.000 $ por unidad, precio a la par el 22 jul 2025, y vencen el 3 feb 2028. Los inversores no reciben intereses periódicos; los rendimientos se determinan únicamente al vencimiento.
Mecánica de rendimiento al alza: los bonos ofrecen un apalancamiento del 200% sobre cualquier rendimiento positivo del índice, pero las ganancias están limitadas a un 32,00%, con un pago máximo de 1.320 $. Protección a la baja: la primera caída del 15% está cubierta; si el índice termina ≤15% por debajo de su nivel inicial, los inversores reciben el principal completo. Más allá de ese límite, los tenedores pierden un 1% del principal por cada 1% adicional de caída, exponiéndolos a pérdidas de hasta el 85%.
Características estructurales clave y riesgos: • No hay obligación de cotización ni mercado secundario, por lo que la liquidez puede ser limitada. • El valor estimado inicial del emisor (≈930–960 $) está por debajo del precio de emisión, reflejando costos incorporados (≈30 $ por unidad) y gastos de cobertura. • Todos los pagos dependen de la solvencia crediticia de BNS. • El pago se basa únicamente en el nivel del índice en la fecha única de valoración (31 ene 2028); los movimientos intermedios no afectan. • Los inversores enfrentan riesgos típicos de notas estructuradas, incluyendo riesgos de mercado, de moneda (acciones de la zona euro en términos de USD), incertidumbre fiscal y conflictos derivados de las actividades de cobertura de BNS/SCUSA.
En resumen, los Buffered PLUS combinan una protección moderada a la baja con un potencial de alza apalancado pero limitado. Son adecuados para inversores con una visión moderadamente alcista a 2 años y medio sobre el EURO STOXX 50 que puedan tolerar riesgo sobre el principal, iliquidez y exposición al riesgo crediticio del emisor.
노바스코샤은행(BNS)은 EURO STOXX 50® 지수와 연계된 "Buffered Performance Leveraged Upside Securities"(Buffered PLUS)를 발행할 계획입니다. 이 선순위 무담보 채권은 단위당 1,000달러 액면가를 가지며, 2025년 7월 22일 액면가로 가격이 책정되고 2028년 2월 3일 만기됩니다. 투자자는 정기 이자 지급이 없으며, 수익은 만기 시에만 결정됩니다.
상승 메커니즘: 이 채권은 지수의 양(+) 성과에 대해 200% 레버리지를 제공하지만, 수익은 32.00%로 상한이 설정되어 최대 지급액은 1,320달러로 제한됩니다. 하락 보호: 최초 15% 하락분은 완충되며, 지수가 초기 수준보다 ≤15% 하락해도 투자자는 원금을 전액 받습니다. 이 완충 범위를 초과하면 투자자는 추가 1% 하락 시마다 원금의 1%를 손실하여 최대 85%까지 손실이 발생할 수 있습니다.
주요 구조적 특징 및 위험: • 상장 또는 2차 시장 의무가 없어 유동성이 제한될 수 있습니다. • 발행자의 초기 추정 가치는 (약 930~960달러) 발행가보다 낮으며, 이는 내재 수수료(약 30달러/단위)와 헤지 비용을 반영합니다. • 모든 지급은 BNS의 신용도에 따라 달라집니다. • 지급은 단일 평가일(2028년 1월 31일)의 지수 수준에만 기반하며, 중간 변동은 무관합니다. • 투자자는 시장 위험, 통화 위험(유로존 주식의 USD 환산), 세금 불확실성, BNS/SCUSA의 헤지 활동에서 발생하는 이해 상충 등 일반적인 구조화 상품 위험에 노출됩니다.
요약하면, Buffered PLUS는 적당한 하락 완충과 레버리지 적용되지만 상한이 있는 상승 잠재력을 결합한 상품입니다. EURO STOXX 50에 대해 2년 반 정도의 온건한 상승 전망을 가진 투자자 중 원금 위험, 유동성 부족, 발행자 신용 위험을 감수할 수 있는 분들에게 적합합니다.
La Bank of Nova Scotia (BNS) prévoit d’émettre des "Buffered Performance Leveraged Upside Securities" (Buffered PLUS) liés à l’indice EURO STOXX 50®. Les obligations senior non garanties ont une valeur nominale de 1 000 $ par unité, un prix à la valeur nominale au 22 juillet 2025 et arrivent à échéance le 3 février 2028. Les investisseurs ne reçoivent aucun intérêt périodique ; les rendements sont entièrement déterminés à l’échéance.
Mécanisme de hausse : les titres offrent un effet de levier de 200 % sur toute performance positive de l’indice, mais les gains sont plafonnés à 32,00 %, limitant le paiement maximal à 1 320 $. Protection à la baisse : la première baisse de 15 % est amortie ; si l’indice termine ≤15 % en dessous de son niveau initial, les investisseurs reçoivent toujours le principal intégral. Au-delà de cette protection, les détenteurs perdent 1 % du principal pour chaque baisse supplémentaire de 1 %, s’exposant à des pertes pouvant atteindre 85 %.
Principales caractéristiques structurelles et risques : • Pas d’obligation de cotation ni de marché secondaire, la liquidité peut donc être limitée. • La valeur initiale estimée par l’émetteur (≈930–960 $) est inférieure au prix d’émission, reflétant des frais incorporés (≈30 $ par unité) et des coûts de couverture. • Tous les paiements dépendent de la solvabilité de BNS. • Le paiement se réfère uniquement au niveau de l’indice à la date unique d’évaluation (31 janvier 2028) ; les mouvements intermédiaires sont sans incidence. • Les investisseurs sont exposés aux risques habituels des notes structurées, notamment marché, devise (actions de la zone euro en dollars USD), incertitude fiscale et conflits liés aux activités de couverture de BNS/SCUSA.
En résumé, les Buffered PLUS combinent une protection modérée à la baisse avec un potentiel de hausse à effet de levier mais plafonné. Ils conviennent aux investisseurs ayant une vision modérément haussière sur 2 ans et demi de l’EURO STOXX 50, capables de tolérer un risque sur le capital, l’illiquidité et l’exposition au risque émetteur.
Die Bank of Nova Scotia (BNS) plant die Emission von "Buffered Performance Leveraged Upside Securities" (Buffered PLUS), die an den EURO STOXX 50® Index gekoppelt sind. Die unbesicherten Senior Notes haben einen Nennwert von 1.000 $ pro Einheit, einen Ausgabepreis zum Nennwert am 22. Juli 2025 und eine Fälligkeit am 3. Februar 2028. Anleger erhalten keine periodischen Zinsen; die Rendite wird ausschließlich bei Fälligkeit bestimmt.
Mechanik der Aufwärtsrendite: Die Notes bieten eine 200%ige Hebelwirkung auf jede positive Indexentwicklung, jedoch sind die Gewinne auf 32,00% begrenzt, was eine maximale Auszahlung von 1.320 $ bedeutet. Abwärtsschutz: Der erste Rückgang von 15% ist gepuffert; wenn der Index ≤15% unter seinem Anfangsniveau schließt, erhalten Anleger ihr volles Kapital zurück. Darüber hinaus verlieren Inhaber für jeden weiteren 1%igen Rückgang 1% des Kapitals, was Verluste von bis zu 85% bedeutet.
Wesentliche strukturelle Merkmale und Risiken: • Keine Notierungs- oder Sekundärmarktverpflichtung, daher kann die Liquidität begrenzt sein. • Der anfängliche geschätzte Wert des Emittenten (≈930–960 $) liegt unter dem Ausgabepreis und spiegelt eingebaute Gebühren (≈30 $ pro Einheit) und Absicherungskosten wider. • Alle Zahlungen hängen von der Kreditwürdigkeit von BNS ab. • Die Auszahlung bezieht sich nur auf den Indexstand am einzigen Bewertungstag (31. Januar 2028); Zwischenbewegungen sind irrelevant. • Anleger sind typischen Risiken von strukturierten Wertpapieren ausgesetzt – einschließlich Markt-, Währungsrisiken (Eurozonen-Aktien in USD), Steuerunsicherheiten und Interessenkonflikten durch Absicherungsaktivitäten von BNS/SCUSA.
Zusammengefasst kombinieren die Buffered PLUS einen moderaten Abwärtsschutz mit einem gehebelten, aber begrenzten Aufwärtspotenzial. Sie eignen sich für Anleger mit einer moderat bullischen 2½-jährigen Sicht auf den EURO STOXX 50, die bereit sind, Kapitalrisiken, Illiquidität und Emittentenrisiken zu akzeptieren.
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Insights
TL;DR: 200% upside to 32% cap, 15% buffer, potential 85% loss; credit and liquidity risks remain.
The Buffered PLUS offer a familiar risk/return profile: double leverage on positive index moves but a strict 32% ceiling. The 15% downside buffer gives modest protection, yet a 30% index drop still costs investors 15% of principal, and deeper drawdowns escalate quickly to a maximum 85% loss. With no coupon, carry is zero and opportunity cost is high if the index stagnates.
The indicative value (≈93–96% of par) highlights a 4–7% embedded cost, aligning with typical retail structured notes. Lack of exchange listing and discretionary market-making by SCUSA constrain exit routes; investors should be willing to hold to maturity. Credit exposure to BNS (rated high-A) is non-trivial over 2.5 years, though default risk is low relative to market risk.
Overall, this is a niche instrument for retail clients seeking leveraged equity exposure with some—but limited—downside mitigation. From a market-wide perspective, the filing is routine and does not materially alter BNS’s financial profile.
TL;DR: Routine note issue; capped upside compromises risk-reward versus direct index exposure.
From an allocation standpoint, the product’s asymmetric payoff is unattractive relative to holding SX5E ETF plus risk management overlay. The 32% cap curtails participation in a strong European rally, whereas downside participation accelerates past −15%. Absent coupon income, the structure competes with risk-free yields near 4-5%, raising a high hurdle for outperformance.
Liquidity and valuation marks will be opaque between issuance and maturity, complicating portfolio reporting and risk measurement. For institutional accounts, the risk unit economics and administrative burden outweigh benefits; retail investors may appreciate the psychological comfort of the buffer, but they must grasp tail risks.
Impact on the broader market or BNS capital stack is negligible; issuance size is likely small and well within existing MTN programs.
La Bank of Nova Scotia (BNS) prevede di emettere "Buffered Performance Leveraged Upside Securities" (Buffered PLUS) collegati all'indice EURO STOXX 50®. I titoli senior non garantiti hanno un valore nominale di 1.000 $ per unità, prezzo pari al valore nominale il 22 luglio 2025, e scadenza il 3 febbraio 2028. Gli investitori non ricevono interessi periodici; i rendimenti sono determinati esclusivamente alla scadenza.
Meccanismo di rendimento positivo: i titoli offrono una leva del 200% su qualsiasi performance positiva dell'indice, ma i guadagni sono limitati a un massimo del 32,00%, con un pagamento massimo di 1.320 $. Protezione dal ribasso: il primo calo del 15% è coperto; se l'indice termina ≤15% sotto il livello iniziale, gli investitori ricevono comunque il capitale pieno. Oltre questa soglia, gli investitori perdono l'1% del capitale per ogni ulteriore 1% di calo, con perdite fino all'85%.
Caratteristiche strutturali e rischi principali: • Nessun obbligo di quotazione o mercato secondario, quindi la liquidità potrebbe essere limitata. • Il valore stimato iniziale dell'emittente (≈930–960 $) è inferiore al prezzo di emissione, riflettendo costi incorporati (≈30 $ per unità) e spese di copertura. • Tutti i pagamenti dipendono dalla solidità creditizia di BNS. • Il pagamento si basa esclusivamente sul livello dell'indice alla data di valutazione unica (31 gennaio 2028); i movimenti intermedi non influenzano il risultato. • Gli investitori affrontano rischi tipici delle note strutturate, inclusi rischi di mercato, di valuta (azioni dell’area euro in termini di USD), incertezze fiscali e conflitti derivanti dalle attività di copertura di BNS/SCUSA.
In sintesi, i Buffered PLUS combinano una moderata protezione dal ribasso con un potenziale rialzo amplificato ma limitato. Sono adatti a investitori con una visione moderatamente rialzista di 2 anni e mezzo sull'EURO STOXX 50, disposti ad accettare il rischio sul capitale, la scarsa liquidità e l'esposizione al rischio emittente.
Bank of Nova Scotia (BNS) planea emitir “Buffered Performance Leveraged Upside Securities” (Buffered PLUS) vinculados al índice EURO STOXX 50®. Los bonos senior no garantizados tienen un principal nominal de 1.000 $ por unidad, precio a la par el 22 jul 2025, y vencen el 3 feb 2028. Los inversores no reciben intereses periódicos; los rendimientos se determinan únicamente al vencimiento.
Mecánica de rendimiento al alza: los bonos ofrecen un apalancamiento del 200% sobre cualquier rendimiento positivo del índice, pero las ganancias están limitadas a un 32,00%, con un pago máximo de 1.320 $. Protección a la baja: la primera caída del 15% está cubierta; si el índice termina ≤15% por debajo de su nivel inicial, los inversores reciben el principal completo. Más allá de ese límite, los tenedores pierden un 1% del principal por cada 1% adicional de caída, exponiéndolos a pérdidas de hasta el 85%.
Características estructurales clave y riesgos: • No hay obligación de cotización ni mercado secundario, por lo que la liquidez puede ser limitada. • El valor estimado inicial del emisor (≈930–960 $) está por debajo del precio de emisión, reflejando costos incorporados (≈30 $ por unidad) y gastos de cobertura. • Todos los pagos dependen de la solvencia crediticia de BNS. • El pago se basa únicamente en el nivel del índice en la fecha única de valoración (31 ene 2028); los movimientos intermedios no afectan. • Los inversores enfrentan riesgos típicos de notas estructuradas, incluyendo riesgos de mercado, de moneda (acciones de la zona euro en términos de USD), incertidumbre fiscal y conflictos derivados de las actividades de cobertura de BNS/SCUSA.
En resumen, los Buffered PLUS combinan una protección moderada a la baja con un potencial de alza apalancado pero limitado. Son adecuados para inversores con una visión moderadamente alcista a 2 años y medio sobre el EURO STOXX 50 que puedan tolerar riesgo sobre el principal, iliquidez y exposición al riesgo crediticio del emisor.
노바스코샤은행(BNS)은 EURO STOXX 50® 지수와 연계된 "Buffered Performance Leveraged Upside Securities"(Buffered PLUS)를 발행할 계획입니다. 이 선순위 무담보 채권은 단위당 1,000달러 액면가를 가지며, 2025년 7월 22일 액면가로 가격이 책정되고 2028년 2월 3일 만기됩니다. 투자자는 정기 이자 지급이 없으며, 수익은 만기 시에만 결정됩니다.
상승 메커니즘: 이 채권은 지수의 양(+) 성과에 대해 200% 레버리지를 제공하지만, 수익은 32.00%로 상한이 설정되어 최대 지급액은 1,320달러로 제한됩니다. 하락 보호: 최초 15% 하락분은 완충되며, 지수가 초기 수준보다 ≤15% 하락해도 투자자는 원금을 전액 받습니다. 이 완충 범위를 초과하면 투자자는 추가 1% 하락 시마다 원금의 1%를 손실하여 최대 85%까지 손실이 발생할 수 있습니다.
주요 구조적 특징 및 위험: • 상장 또는 2차 시장 의무가 없어 유동성이 제한될 수 있습니다. • 발행자의 초기 추정 가치는 (약 930~960달러) 발행가보다 낮으며, 이는 내재 수수료(약 30달러/단위)와 헤지 비용을 반영합니다. • 모든 지급은 BNS의 신용도에 따라 달라집니다. • 지급은 단일 평가일(2028년 1월 31일)의 지수 수준에만 기반하며, 중간 변동은 무관합니다. • 투자자는 시장 위험, 통화 위험(유로존 주식의 USD 환산), 세금 불확실성, BNS/SCUSA의 헤지 활동에서 발생하는 이해 상충 등 일반적인 구조화 상품 위험에 노출됩니다.
요약하면, Buffered PLUS는 적당한 하락 완충과 레버리지 적용되지만 상한이 있는 상승 잠재력을 결합한 상품입니다. EURO STOXX 50에 대해 2년 반 정도의 온건한 상승 전망을 가진 투자자 중 원금 위험, 유동성 부족, 발행자 신용 위험을 감수할 수 있는 분들에게 적합합니다.
La Bank of Nova Scotia (BNS) prévoit d’émettre des "Buffered Performance Leveraged Upside Securities" (Buffered PLUS) liés à l’indice EURO STOXX 50®. Les obligations senior non garanties ont une valeur nominale de 1 000 $ par unité, un prix à la valeur nominale au 22 juillet 2025 et arrivent à échéance le 3 février 2028. Les investisseurs ne reçoivent aucun intérêt périodique ; les rendements sont entièrement déterminés à l’échéance.
Mécanisme de hausse : les titres offrent un effet de levier de 200 % sur toute performance positive de l’indice, mais les gains sont plafonnés à 32,00 %, limitant le paiement maximal à 1 320 $. Protection à la baisse : la première baisse de 15 % est amortie ; si l’indice termine ≤15 % en dessous de son niveau initial, les investisseurs reçoivent toujours le principal intégral. Au-delà de cette protection, les détenteurs perdent 1 % du principal pour chaque baisse supplémentaire de 1 %, s’exposant à des pertes pouvant atteindre 85 %.
Principales caractéristiques structurelles et risques : • Pas d’obligation de cotation ni de marché secondaire, la liquidité peut donc être limitée. • La valeur initiale estimée par l’émetteur (≈930–960 $) est inférieure au prix d’émission, reflétant des frais incorporés (≈30 $ par unité) et des coûts de couverture. • Tous les paiements dépendent de la solvabilité de BNS. • Le paiement se réfère uniquement au niveau de l’indice à la date unique d’évaluation (31 janvier 2028) ; les mouvements intermédiaires sont sans incidence. • Les investisseurs sont exposés aux risques habituels des notes structurées, notamment marché, devise (actions de la zone euro en dollars USD), incertitude fiscale et conflits liés aux activités de couverture de BNS/SCUSA.
En résumé, les Buffered PLUS combinent une protection modérée à la baisse avec un potentiel de hausse à effet de levier mais plafonné. Ils conviennent aux investisseurs ayant une vision modérément haussière sur 2 ans et demi de l’EURO STOXX 50, capables de tolérer un risque sur le capital, l’illiquidité et l’exposition au risque émetteur.
Die Bank of Nova Scotia (BNS) plant die Emission von "Buffered Performance Leveraged Upside Securities" (Buffered PLUS), die an den EURO STOXX 50® Index gekoppelt sind. Die unbesicherten Senior Notes haben einen Nennwert von 1.000 $ pro Einheit, einen Ausgabepreis zum Nennwert am 22. Juli 2025 und eine Fälligkeit am 3. Februar 2028. Anleger erhalten keine periodischen Zinsen; die Rendite wird ausschließlich bei Fälligkeit bestimmt.
Mechanik der Aufwärtsrendite: Die Notes bieten eine 200%ige Hebelwirkung auf jede positive Indexentwicklung, jedoch sind die Gewinne auf 32,00% begrenzt, was eine maximale Auszahlung von 1.320 $ bedeutet. Abwärtsschutz: Der erste Rückgang von 15% ist gepuffert; wenn der Index ≤15% unter seinem Anfangsniveau schließt, erhalten Anleger ihr volles Kapital zurück. Darüber hinaus verlieren Inhaber für jeden weiteren 1%igen Rückgang 1% des Kapitals, was Verluste von bis zu 85% bedeutet.
Wesentliche strukturelle Merkmale und Risiken: • Keine Notierungs- oder Sekundärmarktverpflichtung, daher kann die Liquidität begrenzt sein. • Der anfängliche geschätzte Wert des Emittenten (≈930–960 $) liegt unter dem Ausgabepreis und spiegelt eingebaute Gebühren (≈30 $ pro Einheit) und Absicherungskosten wider. • Alle Zahlungen hängen von der Kreditwürdigkeit von BNS ab. • Die Auszahlung bezieht sich nur auf den Indexstand am einzigen Bewertungstag (31. Januar 2028); Zwischenbewegungen sind irrelevant. • Anleger sind typischen Risiken von strukturierten Wertpapieren ausgesetzt – einschließlich Markt-, Währungsrisiken (Eurozonen-Aktien in USD), Steuerunsicherheiten und Interessenkonflikten durch Absicherungsaktivitäten von BNS/SCUSA.
Zusammengefasst kombinieren die Buffered PLUS einen moderaten Abwärtsschutz mit einem gehebelten, aber begrenzten Aufwärtspotenzial. Sie eignen sich für Anleger mit einer moderat bullischen 2½-jährigen Sicht auf den EURO STOXX 50, die bereit sind, Kapitalrisiken, Illiquidität und Emittentenrisiken zu akzeptieren.
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ISSUER FREE WRITING PROSPECTUS Filed Pursuant to Rule 433 Registration Statement No. 333-282565 Dated June 25, 2025 |
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Buffered PLUS Based on the Value of the EURO STOXX 50® Index due on or about February 3, 2028
Performance Leveraged Upside SecuritiesSM
Principal at Risk Securities
This document provides a summary of the terms of the Buffered Performance Leveraged Upside SecuritiesSM (the “Buffered PLUS”). Investors should carefully review the accompanying preliminary pricing supplement for the Buffered PLUS, the accompanying product supplement, the underlier supplement, the prospectus supplement and the prospectus, as well as the “Risk Considerations” section below, before making an investment decision.
The Buffered PLUS do not guarantee any return of principal at maturity and you could lose up to 85% of your investment. The Buffered PLUS are senior unsecured debt securities issued by The Bank of Nova Scotia (“BNS”), and all payments on the Buffered PLUS are subject to the credit risk of BNS. As used in this document, “we,” “us,” or “our” refers to BNS.
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SUMMARY TERMS |
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Issuer: |
The Bank of Nova Scotia |
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Issue: |
Senior Note Program, Series A |
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Underlying index: |
EURO STOXX 50® Index (Bloomberg Ticker: “SX5E”) |
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Stated principal amount: |
$1,000.00 per Buffered PLUS |
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Issue price: |
$1,000.00 per Buffered PLUS |
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Minimum investment: |
$1,000.00 (1 Buffered PLUS) |
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Interest: |
None |
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Pricing date: |
July 17, 2025 |
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Original issue date: |
July 22, 2025 (3 business days after the pricing date; see preliminary pricing supplement). |
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Valuation date: |
January 31, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Maturity date: |
February 3, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Payment at maturity per Buffered PLUS: |
￭ If the final index value is greater than the initial index value: $1,000.00 + leveraged upside payment In no event will the payment at maturity exceed the maximum payment at maturity. ￭ If the final index value is less than or equal to the initial index value, but not by more than the buffer amount: $1,000.00 ￭ If the final index value is less than the initial index value by more than the buffer amount: $1,000.00 + [$1,000.00 × (underlying return + buffer amount)] If the final index value is less than the initial index value by more than the buffer amount, you will lose 1% for every 1% that the final index value falls below the initial index value in excess of the buffer amount and could lose up to 85% of your investment in the Buffered PLUS. |
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Buffer amount: |
15% |
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Underlying return: |
(final index value – initial index value) / initial index value |
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Leverage factor: |
200% |
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Leveraged upside payment: |
$1,000.00 × leverage factor × underlying return |
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Maximum gain: |
32.00% |
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Maximum payment at maturity: |
$1,320.00 per Buffered PLUS (132.00% of the stated principal amount) |
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Initial index value: |
The index closing value of the underlying index on the pricing date |
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Final index value: |
The index closing value of the underlying index on the valuation date |
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CUSIP/ISIN: |
06418VZF4 / US06418VZF48 |
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Listing: |
The Buffered PLUS will not be listed or displayed on any securities exchange or any electronic communications network. |
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Commission: |
$30.00 per stated principal amount. |
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Estimated value on the pricing date: |
Expected to be between $929.91 and $959.91 per Buffered PLUS. See “Risk Factors” in the preliminary pricing supplement. |
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Preliminary pricing supplement |
http://www.sec.gov/Archives/edgar/data/9631/000183988225034566/bns_424b2-18786.htm |
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HYPOTHETICAL PAYOUT |
The below figures are based on the leverage factor of 200% and maximum gain of 32.00% and are purely hypothetical (the actual terms of your Buffered PLUS will be determined on the pricing date and will be specified in the final pricing supplement).
Hypothetical Payment at Maturity
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Underlying Return |
Payment at Maturity |
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+40.00% |
$1,320.00 |
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+30.00% |
$1,320.00 |
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+20.00% |
$1,320.00 |
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+16.00% |
$1,320.00 |
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+15.00% |
$1,300.00 |
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+10.00% |
$1,200.00 |
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+5.00% |
$1,100.00 |
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0.00% |
$1,000.00 |
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-5.00% |
$1,000.00 |
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-10.00% |
$1,000.00 |
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-15.00% |
$1,000.00 |
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-20.00% |
$950.00 |
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-30.00% |
$850.00 |
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-40.00% |
$750.00 |
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-50.00% |
$650.00 |
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-75.00% |
$400.00 |
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-100.00% |
$150.00 |
A-1
You will find a link to the accompanying preliminary pricing supplement for the Buffered PLUS above and links to the accompanying product supplement, underlier supplement, prospectus supplement and prospectus for the Buffered PLUS under “Additional Information About BNS and the Buffered PLUS” in the preliminary pricing supplement, which you should read and understand prior to investing in the Buffered PLUS.
The issuer has filed a registration statement (including a prospectus as supplemented by a prospectus supplement, underlier 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, underlier 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
▪You may lose up to 85% of your investment in the Buffered PLUS.
▪The stated payout from the issuer applies only at maturity.
▪Your potential return on the Buffered PLUS is limited to the maximum gain.
▪You will not receive any interest payments.
▪The amount payable on the Buffered PLUS is not linked to the value of the underlying index at any time other than the valuation date.
▪Owning the Buffered PLUS is not the same as owning the index constituent stocks.
Risks Relating to Characteristics of the Underlying Index
▪An investment in the Buffered PLUS involves market risk associated with the underlying index.
▪There can be no assurance that the investment view implicit in the Buffered PLUS will be successful.
▪The Buffered PLUS will not be adjusted for changes in exchange rates related to the U.S. dollar.
▪The Buffered PLUS are subject to non-U.S. securities market risk.
▪The underlying index reflects price return, not total return.
▪Changes affecting the underlying index could have an adverse effect on the market value of, and any amount payable on, the Buffered PLUS.
▪There is no affiliation between the index sponsor and BNS, and BNS is not responsible for any disclosure by such index sponsor.
▪Governmental regulatory actions, such as sanctions, could adversely affect your investment in the Buffered PLUS.
Risks Relating to Estimated Value and Liquidity
▪BNS’ initial estimated value of the Buffered PLUS at the time of pricing (when the terms of your Buffered PLUS are set on the pricing date) will be lower than the issue price of the Buffered PLUS.
▪Neither BNS’ nor SCUSA’s estimated value of the Buffered PLUS 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 Buffered PLUS does not represent future values of the Buffered PLUS and may differ from others’ (including SCUSA’s) estimates.
▪The Buffered PLUS have limited liquidity.
▪The price at which SCUSA would buy or sell your Buffered PLUS (if SCUSA makes a market, which it is not obligated to do) will be based on SCUSA’s estimated value of your Buffered PLUS.
▪The price of the Buffered PLUS 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 Buffered PLUS 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 Buffered PLUS and cause our respective interests and those of our clients and counterparties to be contrary to those of investors in the Buffered PLUS.
▪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 index constituent stock issuers 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 Buffered PLUS.
▪Activities conducted by BNS and its affiliates may impact the value of the underlying index and the value of the Buffered PLUS.
▪The calculation agent will have significant discretion with respect to the Buffered PLUS, 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 Buffered PLUS.
Risks Relating to Canadian and U.S. Federal Income Taxation
▪Uncertain tax treatment. Significant aspects of the tax treatment of the Buffered PLUS are uncertain. You should consult your tax advisor about your tax situation. See “Additional Information About the Buffered PLUS — Tax Considerations” and “— Material Canadian Income Tax Consequences” in the preliminary pricing supplement.
Underlying Index
For information about the underlying index, including historical performance information, see “Information About the Underlying Index” in the preliminary pricing supplement.
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