[FWP] Bank of Nova Scotia Free Writing Prospectus
Citi (Series N) has filed a 424(b)(2) preliminary pricing supplement for a new tranche of $1,000-denominated Autocallable Contingent Coupon Equity-Linked Securities tied to Morgan Stanley (MS) common stock and due 27 Aug 2026.
- Contingent coupon: at least 0.8333% monthly (≈10% p.a.) paid only if MS closes ≥ 78% of its initial value on each valuation date.
- Autocall feature: notes redeem at $1,000 plus coupon on any of seven monthly “autocall” dates (Jan 22 – Jul 22 2026) if MS closes ≥ its initial value, capping upside.
- Downside: if not called and MS final value < 78% of initial, investors receive MS shares (or cash) worth the final share price times an equity ratio, exposing them to losses up to 100% of principal.
- Barrier / coupon level: both set at 78% of initial; investors forgo dividends and any price appreciation.
- Issuer / guarantor: Citigroup Global Markets Holdings Inc. (issuer) with full guarantee from Citigroup Inc.; all payments subject to Citi credit risk.
- Pricing metrics: issue price $1,000; estimated value ≥ $917.50 (≈91.7% of face); underwriting fee up to $21.50; securities will not be exchange-listed.
- Liquidity & secondary market: CGMI intends—but is not obliged—to provide bid indications; price likely to be below face and reflect a bid-ask spread.
- Risk highlights: no guaranteed coupons, no principal protection, possible early redemption, tax uncertainty, and potential illiquidity. Investors must be prepared to hold to maturity.
The filing is a routine structured-note issuance that provides Citi incremental funding while transferring market risk on MS shares to noteholders. It contains no new operating or financial results for Citigroup Inc.
Citi (Serie N) ha depositato un supplemento preliminare di prezzo 424(b)(2) per una nuova tranche di titoli azionari collegati a Morgan Stanley (MS) denominati in tagli da 1.000 dollari, con scadenza il 27 agosto 2026.
- Coupon condizionato: almeno 0,8333% mensile (circa 10% annuo), pagato solo se MS chiude ≥ 78% del valore iniziale in ogni data di valutazione.
- Caratteristica autocall: le note vengono rimborsate a 1.000 dollari più coupon in una delle sette date mensili di 'autocall' (gennaio-luglio 2026) se MS chiude ≥ al valore iniziale, limitando il potenziale guadagno.
- Rischio ribasso: se non richiamate e il valore finale di MS è < 78% del valore iniziale, gli investitori ricevono azioni MS (o denaro) pari al prezzo finale per un coefficiente azionario, esponendoli a perdite fino al 100% del capitale.
- Barriera / livello coupon: entrambi fissati al 78% del valore iniziale; gli investitori rinunciano ai dividendi e a qualsiasi apprezzamento del prezzo.
- Emittente / garante: Citigroup Global Markets Holdings Inc. (emittente) con garanzia integrale di Citigroup Inc.; tutti i pagamenti sono soggetti al rischio di credito di Citi.
- Parametri di prezzo: prezzo di emissione 1.000 dollari; valore stimato ≥ 917,50 dollari (circa 91,7% del valore nominale); commissione di sottoscrizione fino a 21,50 dollari; titoli non quotati in borsa.
- Liquidità e mercato secondario: CGMI intende, ma non è obbligata, a fornire indicazioni di prezzo; il prezzo probabilmente sarà inferiore al valore nominale e rifletterà uno spread denaro-lettera.
- Rischi principali: assenza di coupon garantiti, nessuna protezione del capitale, possibile rimborso anticipato, incertezza fiscale e potenziale illiquidità. Gli investitori devono essere pronti a mantenere l'investimento fino alla scadenza.
Il deposito rappresenta un'emissione routinaria di note strutturate che fornisce a Citi un finanziamento aggiuntivo trasferendo il rischio di mercato sulle azioni MS ai detentori delle note. Non contiene nuovi risultati operativi o finanziari per Citigroup Inc.
Citi (Serie N) ha presentado un suplemento preliminar de precio 424(b)(2) para una nueva serie de valores vinculados a acciones de Morgan Stanley (MS) denominados en 1.000 dólares, con vencimiento el 27 de agosto de 2026.
- Cupón contingente: al menos 0,8333% mensual (aprox. 10% anual), pagado solo si MS cierra ≥ 78% de su valor inicial en cada fecha de valoración.
- Función autocall: los bonos se redimen a 1.000 dólares más cupón en cualquiera de las siete fechas mensuales de 'autocall' (enero-julio 2026) si MS cierra ≥ su valor inicial, limitando la ganancia máxima.
- Riesgo a la baja: si no se llama y el valor final de MS es < 78% del inicial, los inversionistas reciben acciones de MS (o efectivo) equivalentes al precio final por un ratio accionario, exponiéndolos a pérdidas de hasta el 100% del principal.
- Barrera / nivel de cupón: ambos fijados en 78% del valor inicial; los inversionistas renuncian a dividendos y cualquier apreciación del precio.
- Emisor / garante: Citigroup Global Markets Holdings Inc. (emisor) con garantía total de Citigroup Inc.; todos los pagos sujetos al riesgo crediticio de Citi.
- Métricas de precio: precio de emisión 1.000 dólares; valor estimado ≥ 917,50 dólares (aprox. 91,7% del valor nominal); comisión de suscripción hasta 21,50 dólares; valores no listados en bolsa.
- Liquidez y mercado secundario: CGMI tiene la intención, pero no está obligado, de proporcionar indicaciones de compra; el precio probablemente será inferior al nominal y reflejará un spread compra-venta.
- Aspectos de riesgo: sin cupones garantizados, sin protección del principal, posible redención anticipada, incertidumbre fiscal y posible iliquidez. Los inversionistas deben estar preparados para mantener hasta el vencimiento.
La presentación es una emisión rutinaria de notas estructuradas que proporciona financiamiento incremental a Citi mientras transfiere el riesgo de mercado de las acciones de MS a los tenedores de las notas. No contiene resultados operativos o financieros nuevos para Citigroup Inc.
Citi(시리즈 N)는 Morgan Stanley(MS) 보통주에 연계된 1,000달러 단위의 자가상환형 조건부 쿠폰 주식연계증권의 신규 트랜치에 대해 424(b)(2) 예비 가격 보충서 제출을 완료했으며, 만기는 2026년 8월 27일입니다.
- 조건부 쿠폰: 매월 최소 0.8333%(연 약 10%) 지급되며, MS가 각 평가일에 초기 가치의 78% 이상으로 마감할 경우에만 지급됩니다.
- 자가상환 기능: MS가 초기 가치 이상으로 마감할 경우 2026년 1월부터 7월까지 7회의 월별 자가상환일 중 어느 날이든 1,000달러와 쿠폰을 지급하며, 상향 수익이 제한됩니다.
- 하방 위험: 자가상환되지 않고 MS 최종 가치가 초기 가치의 78% 미만일 경우, 투자자는 최종 주가에 주식 비율을 곱한 MS 주식(또는 현금)을 받게 되어 원금의 최대 100% 손실 위험에 노출됩니다.
- 장벽/쿠폰 수준: 둘 다 초기 가치의 78%로 설정되며, 투자자는 배당금과 가격 상승분을 포기합니다.
- 발행자/보증인: Citigroup Global Markets Holdings Inc.(발행자)와 Citigroup Inc.의 전액 보증; 모든 지급은 Citi 신용 위험에 따릅니다.
- 가격 지표: 발행 가격 1,000달러; 예상 가치 ≥ 917.50달러(액면가의 약 91.7%); 인수 수수료 최대 21.50달러; 증권은 거래소에 상장되지 않습니다.
- 유동성 및 2차 시장: CGMI는 호가 제공 의향은 있으나 의무는 없으며, 가격은 액면가 이하이고 매수-매도 스프레드를 반영할 가능성이 높습니다.
- 위험 요점: 쿠폰 보장 없음, 원금 보호 없음, 조기 상환 가능성, 세금 불확실성, 잠재적 비유동성. 투자자는 만기까지 보유할 준비가 되어 있어야 합니다.
이번 제출은 Citi에 추가 자금을 제공하는 일상적인 구조화 증권 발행으로, MS 주식에 대한 시장 위험을 증권 보유자에게 이전합니다. Citigroup Inc.의 새로운 영업 또는 재무 결과는 포함되어 있지 않습니다.
Citi (Série N) a déposé un supplément préliminaire de prix 424(b)(2) pour une nouvelle tranche de titres liés à Morgan Stanley (MS) libellés en 1 000 $ et arrivant à échéance le 27 août 2026.
- Coupon conditionnel : au moins 0,8333 % mensuel (≈10 % par an), versé uniquement si MS clôture ≥ 78 % de sa valeur initiale à chaque date d’évaluation.
- Caractéristique autocall : les titres sont remboursés à 1 000 $ plus coupon à l’une des sept dates mensuelles d’autocall (janv. à juil. 2026) si MS clôture ≥ à sa valeur initiale, limitant ainsi le potentiel de hausse.
- Risque à la baisse : si non rappelés et que la valeur finale de MS est < 78 % de l’initiale, les investisseurs reçoivent des actions MS (ou de l’argent) équivalant au prix final multiplié par un ratio d’actions, les exposant à des pertes pouvant atteindre 100 % du capital.
- Barrière / niveau du coupon : tous deux fixés à 78 % de l’initial ; les investisseurs renoncent aux dividendes et à toute appréciation du cours.
- Émetteur / garant : Citigroup Global Markets Holdings Inc. (émetteur) avec garantie complète de Citigroup Inc. ; tous les paiements sont soumis au risque de crédit de Citi.
- Métriques de tarification : prix d’émission 1 000 $ ; valeur estimée ≥ 917,50 $ (≈91,7 % de la valeur nominale) ; frais de souscription jusqu’à 21,50 $ ; titres non cotés en bourse.
- Liquidité & marché secondaire : CGMI a l’intention — sans obligation — de fournir des indications de prix ; le prix sera probablement inférieur à la valeur nominale et reflétera un écart acheteur-vendeur.
- Points de risque : absence de coupons garantis, pas de protection du capital, possible remboursement anticipé, incertitude fiscale et illiquidité potentielle. Les investisseurs doivent être prêts à conserver jusqu’à l’échéance.
Le dépôt est une émission routinière de notes structurées qui offre à Citi un financement supplémentaire tout en transférant le risque de marché des actions MS aux porteurs des notes. Il ne contient aucun nouveau résultat opérationnel ou financier pour Citigroup Inc.
Citi (Serie N) hat einen vorläufigen Preiszusatz 424(b)(2) für eine neue Tranche von 1.000-Dollar-autocallbaren, bedingten Kupon-Aktienanleihen, die an Morgan Stanley (MS) Stammaktien gebunden sind und am 27. August 2026 fällig werden, eingereicht.
- Bedingter Kupon: mindestens 0,8333% monatlich (≈10% p.a.), zahlbar nur, wenn MS an jedem Bewertungstag ≥ 78% seines Anfangswerts schließt.
- Autocall-Funktion: Die Anleihen werden an einem der sieben monatlichen „Autocall“-Termine (Jan 22 – Jul 22 2026) zu 1.000 $ plus Kupon zurückgezahlt, wenn MS ≥ Anfangswert schließt, begrenzt die Aufwärtschance.
- Abwärtsrisiko: Wenn nicht zurückgerufen und MS Endwert < 78% des Anfangswerts, erhalten Anleger MS-Aktien (oder Bargeld) im Wert des Endpreises multipliziert mit einem Aktienverhältnis, was Verluste bis zu 100% des Kapitals bedeutet.
- Barriere / Kuponniveau: beide bei 78% des Anfangswerts festgelegt; Anleger verzichten auf Dividenden und Kurssteigerungen.
- Emittent / Garant: Citigroup Global Markets Holdings Inc. (Emittent) mit voller Garantie von Citigroup Inc.; alle Zahlungen unterliegen dem Kreditrisiko von Citi.
- Preiskennzahlen: Ausgabepreis 1.000 $; geschätzter Wert ≥ 917,50 $ (≈91,7% des Nennwerts); Zeichnungsgebühr bis zu 21,50 $; Wertpapiere werden nicht an der Börse gehandelt.
- Liquidität & Sekundärmarkt: CGMI beabsichtigt, aber ist nicht verpflichtet, Gebotsindikation zu stellen; Preis wahrscheinlich unter Nennwert mit Spread.
- Risikohinweise: keine garantierten Kupons, kein Kapitalschutz, mögliche vorzeitige Rückzahlung, steuerliche Unsicherheit und potenzielle Illiquidität. Anleger sollten bereit sein, bis zur Fälligkeit zu halten.
Die Einreichung ist eine routinemäßige strukturierte Note, die Citi eine zusätzliche Finanzierung verschafft und das Marktrisiko der MS-Aktien auf die Anleihegläubiger überträgt. Sie enthält keine neuen operativen oder finanziellen Ergebnisse für Citigroup Inc.
- None.
- None.
Insights
TL;DR: Routine structured note; offers 10% contingent yield, high downside risk, immaterial to Citi’s balance sheet—neutral overall.
Citigroup continues to monetise demand for yield by issuing equity-linked notes. Economics are typical: investors assume MS share risk for contingent coupons; Citi secures funding at an effective discount (estimated value ≈92% of face) and books underwriting income. The 78% barrier and monthly observations balance call probability and coupon cost. From a corporate standpoint, the notional size (undisclosed but usually modest) will not materially impact Citi’s capital ratios or earnings. Hence, credit profile and equity valuation of Citi remain unchanged. For investors, risk-reward hinges on MS volatility; note is suitable only for sophisticated investors comfortable with potential full loss and liquidity constraints.
TL;DR: Issuance slightly diversifies Citi’s funding mix; credit risk to investors unchanged; impact on issuer negligible.
The guarantee from Citigroup Inc. ensures pari-passu senior unsecured exposure. Given Citi’s $2.4 trn balance sheet, the prospective proceeds (even at several hundred million) are immaterial. The note’s structure shifts market risk to investors without adding contingent liabilities beyond standard debt service. No effect on Citi’s CET1 ratio or funding gap is expected. Credit view on Citi therefore remains neutral. Investors should focus on Citi’s upcoming Q2-25 earnings (15 Jul 2025) for meaningful credit signals rather than this note program.
Citi (Serie N) ha depositato un supplemento preliminare di prezzo 424(b)(2) per una nuova tranche di titoli azionari collegati a Morgan Stanley (MS) denominati in tagli da 1.000 dollari, con scadenza il 27 agosto 2026.
- Coupon condizionato: almeno 0,8333% mensile (circa 10% annuo), pagato solo se MS chiude ≥ 78% del valore iniziale in ogni data di valutazione.
- Caratteristica autocall: le note vengono rimborsate a 1.000 dollari più coupon in una delle sette date mensili di 'autocall' (gennaio-luglio 2026) se MS chiude ≥ al valore iniziale, limitando il potenziale guadagno.
- Rischio ribasso: se non richiamate e il valore finale di MS è < 78% del valore iniziale, gli investitori ricevono azioni MS (o denaro) pari al prezzo finale per un coefficiente azionario, esponendoli a perdite fino al 100% del capitale.
- Barriera / livello coupon: entrambi fissati al 78% del valore iniziale; gli investitori rinunciano ai dividendi e a qualsiasi apprezzamento del prezzo.
- Emittente / garante: Citigroup Global Markets Holdings Inc. (emittente) con garanzia integrale di Citigroup Inc.; tutti i pagamenti sono soggetti al rischio di credito di Citi.
- Parametri di prezzo: prezzo di emissione 1.000 dollari; valore stimato ≥ 917,50 dollari (circa 91,7% del valore nominale); commissione di sottoscrizione fino a 21,50 dollari; titoli non quotati in borsa.
- Liquidità e mercato secondario: CGMI intende, ma non è obbligata, a fornire indicazioni di prezzo; il prezzo probabilmente sarà inferiore al valore nominale e rifletterà uno spread denaro-lettera.
- Rischi principali: assenza di coupon garantiti, nessuna protezione del capitale, possibile rimborso anticipato, incertezza fiscale e potenziale illiquidità. Gli investitori devono essere pronti a mantenere l'investimento fino alla scadenza.
Il deposito rappresenta un'emissione routinaria di note strutturate che fornisce a Citi un finanziamento aggiuntivo trasferendo il rischio di mercato sulle azioni MS ai detentori delle note. Non contiene nuovi risultati operativi o finanziari per Citigroup Inc.
Citi (Serie N) ha presentado un suplemento preliminar de precio 424(b)(2) para una nueva serie de valores vinculados a acciones de Morgan Stanley (MS) denominados en 1.000 dólares, con vencimiento el 27 de agosto de 2026.
- Cupón contingente: al menos 0,8333% mensual (aprox. 10% anual), pagado solo si MS cierra ≥ 78% de su valor inicial en cada fecha de valoración.
- Función autocall: los bonos se redimen a 1.000 dólares más cupón en cualquiera de las siete fechas mensuales de 'autocall' (enero-julio 2026) si MS cierra ≥ su valor inicial, limitando la ganancia máxima.
- Riesgo a la baja: si no se llama y el valor final de MS es < 78% del inicial, los inversionistas reciben acciones de MS (o efectivo) equivalentes al precio final por un ratio accionario, exponiéndolos a pérdidas de hasta el 100% del principal.
- Barrera / nivel de cupón: ambos fijados en 78% del valor inicial; los inversionistas renuncian a dividendos y cualquier apreciación del precio.
- Emisor / garante: Citigroup Global Markets Holdings Inc. (emisor) con garantía total de Citigroup Inc.; todos los pagos sujetos al riesgo crediticio de Citi.
- Métricas de precio: precio de emisión 1.000 dólares; valor estimado ≥ 917,50 dólares (aprox. 91,7% del valor nominal); comisión de suscripción hasta 21,50 dólares; valores no listados en bolsa.
- Liquidez y mercado secundario: CGMI tiene la intención, pero no está obligado, de proporcionar indicaciones de compra; el precio probablemente será inferior al nominal y reflejará un spread compra-venta.
- Aspectos de riesgo: sin cupones garantizados, sin protección del principal, posible redención anticipada, incertidumbre fiscal y posible iliquidez. Los inversionistas deben estar preparados para mantener hasta el vencimiento.
La presentación es una emisión rutinaria de notas estructuradas que proporciona financiamiento incremental a Citi mientras transfiere el riesgo de mercado de las acciones de MS a los tenedores de las notas. No contiene resultados operativos o financieros nuevos para Citigroup Inc.
Citi(시리즈 N)는 Morgan Stanley(MS) 보통주에 연계된 1,000달러 단위의 자가상환형 조건부 쿠폰 주식연계증권의 신규 트랜치에 대해 424(b)(2) 예비 가격 보충서 제출을 완료했으며, 만기는 2026년 8월 27일입니다.
- 조건부 쿠폰: 매월 최소 0.8333%(연 약 10%) 지급되며, MS가 각 평가일에 초기 가치의 78% 이상으로 마감할 경우에만 지급됩니다.
- 자가상환 기능: MS가 초기 가치 이상으로 마감할 경우 2026년 1월부터 7월까지 7회의 월별 자가상환일 중 어느 날이든 1,000달러와 쿠폰을 지급하며, 상향 수익이 제한됩니다.
- 하방 위험: 자가상환되지 않고 MS 최종 가치가 초기 가치의 78% 미만일 경우, 투자자는 최종 주가에 주식 비율을 곱한 MS 주식(또는 현금)을 받게 되어 원금의 최대 100% 손실 위험에 노출됩니다.
- 장벽/쿠폰 수준: 둘 다 초기 가치의 78%로 설정되며, 투자자는 배당금과 가격 상승분을 포기합니다.
- 발행자/보증인: Citigroup Global Markets Holdings Inc.(발행자)와 Citigroup Inc.의 전액 보증; 모든 지급은 Citi 신용 위험에 따릅니다.
- 가격 지표: 발행 가격 1,000달러; 예상 가치 ≥ 917.50달러(액면가의 약 91.7%); 인수 수수료 최대 21.50달러; 증권은 거래소에 상장되지 않습니다.
- 유동성 및 2차 시장: CGMI는 호가 제공 의향은 있으나 의무는 없으며, 가격은 액면가 이하이고 매수-매도 스프레드를 반영할 가능성이 높습니다.
- 위험 요점: 쿠폰 보장 없음, 원금 보호 없음, 조기 상환 가능성, 세금 불확실성, 잠재적 비유동성. 투자자는 만기까지 보유할 준비가 되어 있어야 합니다.
이번 제출은 Citi에 추가 자금을 제공하는 일상적인 구조화 증권 발행으로, MS 주식에 대한 시장 위험을 증권 보유자에게 이전합니다. Citigroup Inc.의 새로운 영업 또는 재무 결과는 포함되어 있지 않습니다.
Citi (Série N) a déposé un supplément préliminaire de prix 424(b)(2) pour une nouvelle tranche de titres liés à Morgan Stanley (MS) libellés en 1 000 $ et arrivant à échéance le 27 août 2026.
- Coupon conditionnel : au moins 0,8333 % mensuel (≈10 % par an), versé uniquement si MS clôture ≥ 78 % de sa valeur initiale à chaque date d’évaluation.
- Caractéristique autocall : les titres sont remboursés à 1 000 $ plus coupon à l’une des sept dates mensuelles d’autocall (janv. à juil. 2026) si MS clôture ≥ à sa valeur initiale, limitant ainsi le potentiel de hausse.
- Risque à la baisse : si non rappelés et que la valeur finale de MS est < 78 % de l’initiale, les investisseurs reçoivent des actions MS (ou de l’argent) équivalant au prix final multiplié par un ratio d’actions, les exposant à des pertes pouvant atteindre 100 % du capital.
- Barrière / niveau du coupon : tous deux fixés à 78 % de l’initial ; les investisseurs renoncent aux dividendes et à toute appréciation du cours.
- Émetteur / garant : Citigroup Global Markets Holdings Inc. (émetteur) avec garantie complète de Citigroup Inc. ; tous les paiements sont soumis au risque de crédit de Citi.
- Métriques de tarification : prix d’émission 1 000 $ ; valeur estimée ≥ 917,50 $ (≈91,7 % de la valeur nominale) ; frais de souscription jusqu’à 21,50 $ ; titres non cotés en bourse.
- Liquidité & marché secondaire : CGMI a l’intention — sans obligation — de fournir des indications de prix ; le prix sera probablement inférieur à la valeur nominale et reflétera un écart acheteur-vendeur.
- Points de risque : absence de coupons garantis, pas de protection du capital, possible remboursement anticipé, incertitude fiscale et illiquidité potentielle. Les investisseurs doivent être prêts à conserver jusqu’à l’échéance.
Le dépôt est une émission routinière de notes structurées qui offre à Citi un financement supplémentaire tout en transférant le risque de marché des actions MS aux porteurs des notes. Il ne contient aucun nouveau résultat opérationnel ou financier pour Citigroup Inc.
Citi (Serie N) hat einen vorläufigen Preiszusatz 424(b)(2) für eine neue Tranche von 1.000-Dollar-autocallbaren, bedingten Kupon-Aktienanleihen, die an Morgan Stanley (MS) Stammaktien gebunden sind und am 27. August 2026 fällig werden, eingereicht.
- Bedingter Kupon: mindestens 0,8333% monatlich (≈10% p.a.), zahlbar nur, wenn MS an jedem Bewertungstag ≥ 78% seines Anfangswerts schließt.
- Autocall-Funktion: Die Anleihen werden an einem der sieben monatlichen „Autocall“-Termine (Jan 22 – Jul 22 2026) zu 1.000 $ plus Kupon zurückgezahlt, wenn MS ≥ Anfangswert schließt, begrenzt die Aufwärtschance.
- Abwärtsrisiko: Wenn nicht zurückgerufen und MS Endwert < 78% des Anfangswerts, erhalten Anleger MS-Aktien (oder Bargeld) im Wert des Endpreises multipliziert mit einem Aktienverhältnis, was Verluste bis zu 100% des Kapitals bedeutet.
- Barriere / Kuponniveau: beide bei 78% des Anfangswerts festgelegt; Anleger verzichten auf Dividenden und Kurssteigerungen.
- Emittent / Garant: Citigroup Global Markets Holdings Inc. (Emittent) mit voller Garantie von Citigroup Inc.; alle Zahlungen unterliegen dem Kreditrisiko von Citi.
- Preiskennzahlen: Ausgabepreis 1.000 $; geschätzter Wert ≥ 917,50 $ (≈91,7% des Nennwerts); Zeichnungsgebühr bis zu 21,50 $; Wertpapiere werden nicht an der Börse gehandelt.
- Liquidität & Sekundärmarkt: CGMI beabsichtigt, aber ist nicht verpflichtet, Gebotsindikation zu stellen; Preis wahrscheinlich unter Nennwert mit Spread.
- Risikohinweise: keine garantierten Kupons, kein Kapitalschutz, mögliche vorzeitige Rückzahlung, steuerliche Unsicherheit und potenzielle Illiquidität. Anleger sollten bereit sein, bis zur Fälligkeit zu halten.
Die Einreichung ist eine routinemäßige strukturierte Note, die Citi eine zusätzliche Finanzierung verschafft und das Marktrisiko der MS-Aktien auf die Anleihegläubiger überträgt. Sie enthält keine neuen operativen oder finanziellen Ergebnisse für Citigroup Inc.
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ISSUER FREE WRITING PROSPECTUS |
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Filed Pursuant to Rule 433 |
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Registration Statement No. 333-282565 |
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Dated July 10, 2025 |
Contingent Income Auto-Callable Securities due on or about July 21, 2028
Based on the Performance of the Common Stock of Palantir Technologies Inc.
Principal at Risk Securities
This document provides a summary of the terms of the Contingent Income Auto-Callable Securities (the “securities”). Investors should carefully review the accompanying preliminary pricing supplement for the securities, the accompanying product supplement, the prospectus supplement and the prospectus, as well as the “Risk Considerations” section below, before making an investment decision.
The securities do not guarantee any return of principal at maturity. Investors will not participate in any appreciation of the underlying stock and must be willing to accept the risk of not receiving any contingent quarterly coupons over the term of the securities. The securities are senior unsecured debt securities issued by The Bank of Nova Scotia (“BNS”), and all payments on the securities are subject to the credit risk of BNS. As used in this document, “we,” “us,” or “our” refers to BNS.
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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 stock: |
Common stock of Palantir Technologies Inc. (Bloomberg Ticker: “PLTR UW”) |
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Stated principal amount: |
$1,000.00 per security |
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Minimum investment: |
$1,000 (1 security) |
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Pricing date: |
July 18, 2025 |
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Original issue date: |
July 23, 2025 (3 business days after the pricing date; see preliminary pricing supplement). |
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Final determination date: |
July 18, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Maturity date: |
July 21, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Early redemption: |
If the closing price of the underlying stock on any determination date other than the final determination date is greater than or equal to the call threshold price, the securities will be automatically redeemed for an amount per security equal to the early redemption payment on the first contingent coupon payment date immediately following the related determination date. No further payments will be made on the securities once they have been redeemed. |
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Early redemption payment: |
The early redemption payment will be an amount equal to (i) the stated principal amount plus (ii) the contingent quarterly coupon with respect to the applicable determination date and any previously unpaid contingent quarterly coupons with respect to any previous determination dates pursuant to the memory coupon feature. |
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Contingent quarterly coupon: |
▪If the closing price on any determination date is greater than or equal to the downside threshold price, we will pay on the related contingent coupon payment date a contingent quarterly coupon of $47.50 (equivalent to 19.00% per annum of the stated principal amount) per security, plus any previously unpaid contingent quarterly coupons with respect to any previous determination dates pursuant to the memory coupon feature. ▪If the closing price on any determination date is less than the downside threshold price, we will not pay a contingent quarterly coupon on the related contingent coupon payment date. |
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Memory coupon feature: |
If a contingent quarterly coupon is not paid on a contingent coupon payment date (other than the maturity date) because the closing price of the underlying stock on the related determination date is less than the downside threshold price, such contingent quarterly coupon will be paid on a later contingent coupon payment date if the closing price of the underlying stock on the determination date corresponding to such later contingent coupon payment date is greater than or equal to the downside threshold price. For the avoidance of doubt, once a previously unpaid contingent quarterly coupon has been paid on a later contingent coupon payment date, it will not be made again on any subsequent contingent coupon payment date. If the closing price of the underlying stock on each of the determination dates is less than the downside threshold price, you will receive no contingent quarterly coupons during the term of, and will not receive a positive return on, the securities. |
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Determination dates: |
Quarterly (as set forth on the cover of the preliminary pricing supplement), subject to postponement for non-trading days and certain market disruption events as described in the accompanying product supplement. |
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Contingent coupon payment dates: |
Quarterly (as set forth on the cover of the preliminary pricing supplement), subject to postponement for non-business days and certain market disruption events as described in the accompanying product supplement. |
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Payment at maturity: |
▪If the final share price is greater than or equal to the downside threshold price: (i) the stated principal amount plus (ii) the contingent quarterly coupon with respect to the final determination date and any previously unpaid contingent quarterly coupons with respect to any previous determination dates pursuant to the memory coupon feature ▪If the final share price is less than the downside threshold price: (i) the stated principal amount multiplied by (ii) the share performance factor If the final share price is less than the downside threshold price, the payment at maturity will be less than 50.00% of the stated principal amount and could be as low as zero. |
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Share performance factor: |
Final share price divided by the initial share price |
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Call threshold price: |
100.00% of the initial share price, as may be adjusted in the case of certain adjustment events as described in the accompanying product supplement |
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Downside threshold price: |
50.00% of the initial share price, as may be adjusted in the case of certain adjustment events as described in the accompanying product supplement |
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Initial share price: |
The closing price of the underlying stock on the pricing date, as may be adjusted in the case of certain adjustment events as described in the accompanying product supplement. |
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Final share price: |
The closing price of the underlying stock on the final determination date, as may be adjusted in the case of certain adjustment events as described in the accompanying product supplement |
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CUSIP / ISIN: |
06419DAY9 / US06419DAY94 |
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Listing: |
The securities will not be listed or displayed on any securities exchange or any electronic communications network. |
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Commission: |
$22.50 per stated principal amount. |
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Estimated value on the pricing date: |
Expected to be between $937.41 and $967.41 per security. See “Risk Factors” in the preliminary pricing supplement. |
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Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/9631/000183988225038166/bns_424b2-20784.htm |
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HYPOTHETICAL PAYOUT |
The below figures are based on a hypothetical downside threshold price of 50.00% of a hypothetical initial share price and are purely hypothetical (the actual terms of your securities will be determined on the pricing date and will be specified in the final pricing supplement).
Hypothetical Payment at Maturity if No Early Redemption Occurs
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Change in Underlying Stock |
Payment at Maturity (excluding any contingent quarterly coupon payable at maturity) |
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+50.00% |
$1,000.00 |
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+40.00% |
$1,000.00 |
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+30.00% |
$1,000.00 |
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+20.00% |
$1,000.00 |
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+10.00% |
$1,000.00 |
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0.00% |
$1,000.00 |
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-10.00% |
$1,000.00 |
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-20.00% |
$1,000.00 |
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-30.00% |
$1,000.00 |
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-40.00% |
$1,000.00 |
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-50.00% |
$1,000.00 |
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-51.00% |
$490.00 |
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-60.00% |
$400.00 |
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-70.00% |
$300.00 |
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-80.00% |
$200.00 |
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-90.00% |
$100.00 |
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-100.00% |
$0.00 |
A-1
You will find a link to the accompanying preliminary pricing supplement for the securities above and links to the accompanying product supplement and accompanying prospectus for the securities under “Additional Information About BNS and the Securities” in the preliminary pricing supplement, which you should read and understand prior to investing in the securities.
The issuer has filed a registration statement (including a prospectus as supplemented by a prospectus supplement, product supplement and the preliminary pricing supplement) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the accompanying prospectus in that registration statement and the other documents the issuer has filed with the SEC, including the accompanying preliminary pricing supplement and the accompanying prospectus supplement and product supplement, for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling (212) 225-5678. Our Central Index Key, or CIK, on the SEC web site is 0000009631.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to Return Characteristics
▪Risk of loss at maturity.
▪Contingent repayment of stated principal amount only at maturity.
▪You may not receive any contingent quarterly coupons.
▪Greater expected volatility with respect to the underlying stock generally reflects a higher contingent quarterly coupon and a higher expectation as of the pricing date that the final share price of the underlying stock could be less than the downside threshold price on the final determination date.
▪The securities are subject to reinvestment risk in the event of an early redemption.
▪The contingent quarterly coupon, if any, is based solely on the closing price or the final share price, as applicable.
▪Your potential return on the securities is limited, you will not participate in any appreciation of the underlying stock and you will not realize a return beyond the returns represented by the contingent quarterly coupons received, if any, during the term of the securities.
Risks Relating to Characteristics of the Underlying Stock
▪The securities are subject to risks associated with investments in single equity securities.
▪There can be no assurance that the investment view implicit in the securities will be successful.
▪There is no affiliation between BNS and the underlying stock issuer.
Risks Relating to Estimated Value and Liquidity
▪BNS’ initial estimated value of the securities at the time of pricing (when the terms of your securities are set on the pricing date) will be lower than the issue price of the securities.
▪Neither BNS’ nor SCUSA’s estimated value of the securities at any time is determined by reference to credit spreads or the borrowing rate BNS would pay for its conventional fixed-rate debt securities.
▪BNS’ initial estimated value of the securities does not represent future values of the securities and may differ from others’ (including SCUSA’s) estimates.
▪The securities have limited liquidity.
▪The price at which SCUSA would buy or sell your securities (if SCUSA makes a market, which it is not obligated to do) will be based on SCUSA’s estimated value of your securities.
▪The price of the securities prior to maturity will depend on a number of factors and may be substantially less than the stated principal amount.
Risks Relating to General Credit Characteristics
▪Payments on the securities are subject to the credit risk of BNS.
Risks Relating to Hedging Activities and Conflicts of Interest
▪Hedging activities by BNS and SCUSA may negatively impact investors in the securities and cause our respective interests and those of our clients and counterparties to be contrary to those of investors in the securities.
▪The calculation agent can make antidilution and other adjustments that may adversely affect the market value of, and any amounts payable on, the securities.
▪We, SCUSA and our other affiliates regularly provide services to, or otherwise have business relationships with, a broad client base, which has included and may include us and the underlying stock issuer and the market activities by us, SCUSA or our other affiliates for our or their own respective accounts or for our clients could negatively impact investors in the securities.
▪Activities conducted by BNS and its affiliates may impact the market price of the underlying stock and the value of the securities.
▪The calculation agent will have significant discretion with respect to the securities, which may be exercised in a manner that is adverse to your interests.
▪BNS and its affiliates may publish research or make opinions or recommendations that are inconsistent with an investment in the securities.
Risks Relating to Canadian and U.S. Federal Income Taxation
▪Uncertain tax treatment. Significant aspects of the tax treatment of the securities are uncertain. You should consult your tax advisor about your tax situation. See “Additional Information About the Securities — Tax Considerations” and “— Material Canadian Income Tax Consequences” in the preliminary pricing supplement.
Underlying Stock
For information about the underlying stock, including historical performance information, see “Information About the Underlying Stock” in the preliminary pricing supplement.
A-2
