[FWP] Bank of Nova Scotia Free Writing Prospectus
The Bank of Nova Scotia (BNS) is marketing Contingent Income Auto-Callable Securities linked to the common stock of The Home Depot, Inc. (HD). The $1,000-denominated notes mature on 14 Jul 2028 (three-year tenor) and are issued under BNS’s Senior Note Program, Series A. Investors will receive a contingent coupon of 2.50% per quarter (10.00% p.a.) for any determination date on which the HD closing price is at or above the 80% downside threshold. If on any quarterly determination date (other than the final one) the HD price is at or above the 100% call threshold, the notes will be automatically redeemed at par plus the current coupon, terminating future payments.
At maturity, if the notes have not been called: (i) when the final HD price is ≥ 80% of the initial price, holders receive par plus the final coupon; (ii) when the final price is < 80%, repayment is par × (final/initial price), exposing investors to a principal loss of at least 20% and potentially total loss.
Key structural features include:
- Principal at risk; no participation in equity upside beyond contingent coupons.
- BNS credit risk; senior unsecured obligations, not FDIC-insured.
- Limited liquidity; the securities will not be listed and secondary market, if any, will be provided only on a best-efforts basis by Scotia Capital (USA) Inc.
- BNS estimates initial value at $938.90 – $968.90 (93.9%–96.9% of par), indicating underwriting/structuring costs.
The product suits investors seeking enhanced current income in return for accepting single-stock downside risk and limited upside. It is inappropriate for investors requiring capital preservation or broad diversification.
La Bank of Nova Scotia (BNS) sta promuovendo titoli Contingent Income Auto-Callable legati alle azioni ordinarie di The Home Depot, Inc. (HD). I titoli, denominati $1.000, scadono il 14 luglio 2028 (durata triennale) e sono emessi nell'ambito del Programma Senior Note di BNS, Serie A. Gli investitori riceveranno un cedola condizionata del 2,50% trimestrale (10,00% annuo) per ogni data di determinazione in cui il prezzo di chiusura di HD sia pari o superiore alla soglia di ribasso dell'80%. Se in una qualsiasi data di determinazione trimestrale (eccetto l'ultima) il prezzo di HD è pari o superiore alla soglia di richiamo del 100%, i titoli verranno rimborsati automaticamente a valore nominale più la cedola corrente, interrompendo i pagamenti futuri.
Alla scadenza, se i titoli non sono stati richiamati: (i) se il prezzo finale di HD è ≥ 80% del prezzo iniziale, i detentori ricevono il valore nominale più l'ultima cedola; (ii) se il prezzo finale è < 80%, il rimborso sarà pari a valore nominale × (prezzo finale/prezzo iniziale), esponendo gli investitori a una perdita sul capitale di almeno il 20% e potenzialmente alla perdita totale.
Caratteristiche strutturali chiave includono:
- Capitale a rischio; nessuna partecipazione all'incremento azionario oltre le cedole condizionate.
- Rischio di credito BNS; obbligazioni senior non garantite, non assicurate dalla FDIC.
- Liquidità limitata; i titoli non saranno quotati e il mercato secondario, se presente, sarà fornito solo su base di migliori sforzi da Scotia Capital (USA) Inc.
- BNS stima un valore iniziale di $938,90 – $968,90 (93,9%–96,9% del valore nominale), indicando costi di sottoscrizione/strutturazione.
Il prodotto è adatto a investitori che cercano un reddito attuale maggiorato in cambio dell'accettazione del rischio di ribasso su un singolo titolo e di un upside limitato. Non è indicato per investitori che richiedono preservazione del capitale o ampia diversificazione.
El Bank of Nova Scotia (BNS) está comercializando valores Auto-Callable de Ingresos Contingentes vinculados a las acciones ordinarias de The Home Depot, Inc. (HD). Los bonos, denominados en $1,000, vencen el 14 de julio de 2028 (plazo de tres años) y se emiten bajo el Programa de Notas Senior, Serie A, de BNS. Los inversionistas recibirán un cupón contingente del 2.50% trimestral (10.00% anual) para cualquier fecha de determinación en la que el precio de cierre de HD esté en o por encima del umbral de caída del 80%. Si en cualquier fecha de determinación trimestral (excepto la final) el precio de HD está en o por encima del umbral de llamado del 100%, los bonos serán redimidos automáticamente al valor nominal más el cupón actual, terminando futuros pagos.
Al vencimiento, si los bonos no han sido llamados: (i) cuando el precio final de HD sea ≥ 80% del precio inicial, los tenedores recibirán el valor nominal más el cupón final; (ii) cuando el precio final sea < 80%, el reembolso será valor nominal × (precio final/precio inicial), exponiendo a los inversionistas a una pérdida de capital de al menos 20% y potencialmente a una pérdida total.
Las características estructurales clave incluyen:
- Capital en riesgo; sin participación en la subida del valor de las acciones más allá de los cupones contingentes.
- Riesgo crediticio de BNS; obligaciones senior no garantizadas, no aseguradas por la FDIC.
- Liquidez limitada; los valores no estarán listados y el mercado secundario, si existe, será proporcionado solo bajo el mejor esfuerzo por Scotia Capital (USA) Inc.
- BNS estima un valor inicial de $938.90 – $968.90 (93.9%–96.9% del valor nominal), indicando costos de suscripción/estructuración.
El producto es adecuado para inversionistas que buscan ingresos actuales mejorados a cambio de aceptar el riesgo de caída de una acción individual y un potencial limitado de ganancia. No es apropiado para inversionistas que requieren preservación de capital o diversificación amplia.
노바스코샤 은행(BNS)은 홈디포(The Home Depot, Inc., HD)의 보통주와 연계된 조건부 수익 자동상환 증권을 마케팅하고 있습니다. $1,000 단위로 발행된 이 채권은 2028년 7월 14일에 만기(3년 만기)되며 BNS의 선순위 채권 프로그램 시리즈 A에 따라 발행됩니다. 투자자는 HD 종가가 80% 하락 임계치 이상인 결정일마다 분기별 2.50% (연 10.00%) 조건부 쿠폰을 받게 됩니다. 만약 최종 결정일을 제외한 분기별 결정일에 HD 가격이 100% 상환 임계치 이상이면, 채권은 액면가와 현재 쿠폰을 더한 금액으로 자동 상환되어 향후 지급이 종료됩니다.
만기 시 채권이 상환되지 않았다면: (i) 최종 HD 가격이 초기 가격의 80% 이상이면 보유자는 액면가와 최종 쿠폰을 받습니다; (ii) 최종 가격이 80% 미만이면 상환금은 액면가 × (최종가격/초기가격)으로, 투자자는 최소 20% 이상의 원금 손실과 잠재적 전액 손실 위험에 노출됩니다.
주요 구조적 특징은 다음과 같습니다:
- 원금 위험; 조건부 쿠폰 외에는 주식 상승에 대한 참여 없음.
- BNS 신용 위험; 선순위 무담보 채무, FDIC 보험 미적용.
- 제한된 유동성; 증권은 상장되지 않으며, 2차 시장이 존재할 경우 Scotia Capital (USA) Inc.가 최선의 노력으로만 제공합니다.
- BNS는 초기 가치를 $938.90 – $968.90(액면가의 93.9%–96.9%)로 추정하며, 이는 인수/구조화 비용을 반영합니다.
이 상품은 단일 주식 하락 위험과 제한된 상승 잠재력을 감수하는 대가로 향상된 현재 수익을 원하는 투자자에게 적합합니다. 자본 보존이나 광범위한 분산 투자를 원하는 투자자에게는 적합하지 않습니다.
La Bank of Nova Scotia (BNS) commercialise des titres à revenu conditionnel auto-remboursables liés aux actions ordinaires de The Home Depot, Inc. (HD). Les billets, d'une valeur nominale de 1 000 $, arrivent à échéance le 14 juillet 2028 (durée de trois ans) et sont émis dans le cadre du programme de billets seniors, série A, de BNS. Les investisseurs recevront un coupon conditionnel de 2,50 % par trimestre (10,00 % par an) pour toute date de constatation où le cours de clôture de HD est égal ou supérieur au seuil de baisse de 80 %. Si, à une date de constatation trimestrielle (autre que la dernière), le cours de HD est égal ou supérieur au seuil d’appel de 100 %, les billets seront automatiquement remboursés à leur valeur nominale plus le coupon en cours, mettant fin aux paiements futurs.
À l’échéance, si les billets n’ont pas été appelés : (i) lorsque le cours final de HD est ≥ 80 % du prix initial, les détenteurs reçoivent la valeur nominale plus le coupon final ; (ii) lorsque le cours final est < 80 %, le remboursement est de valeur nominale × (prix final/prix initial), exposant les investisseurs à une perte en capital d’au moins 20 % et potentiellement à une perte totale.
Les principales caractéristiques structurelles incluent :
- Capital à risque ; pas de participation à la hausse des actions au-delà des coupons conditionnels.
- Risque de crédit BNS ; obligations senior non garanties, non assurées par la FDIC.
- Liquidité limitée ; les titres ne seront pas cotés et le marché secondaire, le cas échéant, sera assuré uniquement sur une base de meilleurs efforts par Scotia Capital (USA) Inc.
- BNS estime la valeur initiale entre 938,90 $ et 968,90 $ (93,9 %–96,9 % de la valeur nominale), ce qui reflète les coûts de souscription/structuration.
Ce produit convient aux investisseurs recherchant un revenu courant amélioré en échange d’un risque de baisse lié à une action unique et d’un potentiel de hausse limité. Il n’est pas adapté aux investisseurs exigeant la préservation du capital ou une large diversification.
Die Bank of Nova Scotia (BNS) bietet Contingent Income Auto-Callable Securities an, die an die Stammaktien von The Home Depot, Inc. (HD) gekoppelt sind. Die auf $1.000 lautenden Notes laufen bis zum 14. Juli 2028 (dreijährige Laufzeit) und werden im Rahmen des Senior Note Programms, Serie A, von BNS ausgegeben. Anleger erhalten einen bedingten Kupon von 2,50% pro Quartal (10,00% p.a.), sofern der Schlusskurs von HD an einem Feststellungstag auf oder über der 80%-Abwärtsgrenze liegt. Liegt der HD-Kurs an einem Quartalsfeststellungstag (außer dem letzten) auf oder über der 100%-Call-Schwelle, werden die Notes automatisch zum Nennwert zuzüglich des aktuellen Kupons zurückgezahlt, womit zukünftige Zahlungen enden.
Bei Fälligkeit, falls die Notes nicht zurückgerufen wurden: (i) wenn der finale HD-Kurs ≥ 80% des Anfangskurses ist, erhalten die Inhaber den Nennwert plus den letzten Kupon; (ii) ist der finale Kurs < 80%, erfolgt die Rückzahlung in Höhe von Nennwert × (finaler/anfänglicher Kurs), wodurch Anleger einem Kapitalverlust von mindestens 20% und potenziell Totalverlust ausgesetzt sind.
Wesentliche strukturelle Merkmale sind:
- Kapitalrisiko; keine Beteiligung an Kurssteigerungen über die bedingten Kupons hinaus.
- BNS-Kreditrisiko; unbesicherte Seniorverbindlichkeiten, nicht FDIC-versichert.
- Begrenzte Liquidität; die Wertpapiere werden nicht börslich gehandelt, und ein Sekundärmarkt wird, falls vorhanden, nur auf Best-Effort-Basis von Scotia Capital (USA) Inc. bereitgestellt.
- BNS schätzt den Anfangswert auf $938,90 – $968,90 (93,9%–96,9% des Nennwerts), was Zeichnungs-/Strukturierungskosten widerspiegelt.
Das Produkt eignet sich für Anleger, die ein erhöhtes laufendes Einkommen suchen und bereit sind, das Abwärtsrisiko einer Einzelaktie sowie begrenztes Aufwärtspotenzial zu akzeptieren. Es ist ungeeignet für Anleger, die Kapitalerhalt oder breite Diversifikation wünschen.
- None.
- None.
Insights
TL;DR 10% contingent yield attractive, but investors absorb >20% HD downside and receive no upside beyond coupons.
Analysis: The note’s 10% annual coupon is competitive relative to current investment-grade yields, yet it is paid only when HD stays above the 80% barrier. Historical volatility of HD suggests coupon skips are plausible in market stress. The auto-call at 100% benefits BNS by shortening duration when shares perform well, capping holder returns. Principal risk is asymmetric: any decline beyond 20% translates 1-for-1 into capital loss, while upside is surrendered. Estimated fair value shows a 3%–6% embedded cost, typical for retail structured products. From a credit perspective, BNS is A- rated, but investors accept unsecured exposure. Overall, risk/return is balanced but not compelling for diversified portfolios.
TL;DR Product is income-oriented but concentrates risk in a single U.S. retail equity and illiquid debt format.
The contingent income may appeal to yield-hungry investors, yet the structure effectively writes a down-and-in put on HD while forfeiting upside. Capital loss scenarios begin at a relatively shallow 20% decline—historically plausible over a three-year window. Lack of listing and wide bid-ask spreads hinder secondary exit. Tax treatment is uncertain and could further erode returns. I view the security as a tactical income play appropriate only for investors with a positive to neutral HD outlook and capacity to hold to maturity.
La Bank of Nova Scotia (BNS) sta promuovendo titoli Contingent Income Auto-Callable legati alle azioni ordinarie di The Home Depot, Inc. (HD). I titoli, denominati $1.000, scadono il 14 luglio 2028 (durata triennale) e sono emessi nell'ambito del Programma Senior Note di BNS, Serie A. Gli investitori riceveranno un cedola condizionata del 2,50% trimestrale (10,00% annuo) per ogni data di determinazione in cui il prezzo di chiusura di HD sia pari o superiore alla soglia di ribasso dell'80%. Se in una qualsiasi data di determinazione trimestrale (eccetto l'ultima) il prezzo di HD è pari o superiore alla soglia di richiamo del 100%, i titoli verranno rimborsati automaticamente a valore nominale più la cedola corrente, interrompendo i pagamenti futuri.
Alla scadenza, se i titoli non sono stati richiamati: (i) se il prezzo finale di HD è ≥ 80% del prezzo iniziale, i detentori ricevono il valore nominale più l'ultima cedola; (ii) se il prezzo finale è < 80%, il rimborso sarà pari a valore nominale × (prezzo finale/prezzo iniziale), esponendo gli investitori a una perdita sul capitale di almeno il 20% e potenzialmente alla perdita totale.
Caratteristiche strutturali chiave includono:
- Capitale a rischio; nessuna partecipazione all'incremento azionario oltre le cedole condizionate.
- Rischio di credito BNS; obbligazioni senior non garantite, non assicurate dalla FDIC.
- Liquidità limitata; i titoli non saranno quotati e il mercato secondario, se presente, sarà fornito solo su base di migliori sforzi da Scotia Capital (USA) Inc.
- BNS stima un valore iniziale di $938,90 – $968,90 (93,9%–96,9% del valore nominale), indicando costi di sottoscrizione/strutturazione.
Il prodotto è adatto a investitori che cercano un reddito attuale maggiorato in cambio dell'accettazione del rischio di ribasso su un singolo titolo e di un upside limitato. Non è indicato per investitori che richiedono preservazione del capitale o ampia diversificazione.
El Bank of Nova Scotia (BNS) está comercializando valores Auto-Callable de Ingresos Contingentes vinculados a las acciones ordinarias de The Home Depot, Inc. (HD). Los bonos, denominados en $1,000, vencen el 14 de julio de 2028 (plazo de tres años) y se emiten bajo el Programa de Notas Senior, Serie A, de BNS. Los inversionistas recibirán un cupón contingente del 2.50% trimestral (10.00% anual) para cualquier fecha de determinación en la que el precio de cierre de HD esté en o por encima del umbral de caída del 80%. Si en cualquier fecha de determinación trimestral (excepto la final) el precio de HD está en o por encima del umbral de llamado del 100%, los bonos serán redimidos automáticamente al valor nominal más el cupón actual, terminando futuros pagos.
Al vencimiento, si los bonos no han sido llamados: (i) cuando el precio final de HD sea ≥ 80% del precio inicial, los tenedores recibirán el valor nominal más el cupón final; (ii) cuando el precio final sea < 80%, el reembolso será valor nominal × (precio final/precio inicial), exponiendo a los inversionistas a una pérdida de capital de al menos 20% y potencialmente a una pérdida total.
Las características estructurales clave incluyen:
- Capital en riesgo; sin participación en la subida del valor de las acciones más allá de los cupones contingentes.
- Riesgo crediticio de BNS; obligaciones senior no garantizadas, no aseguradas por la FDIC.
- Liquidez limitada; los valores no estarán listados y el mercado secundario, si existe, será proporcionado solo bajo el mejor esfuerzo por Scotia Capital (USA) Inc.
- BNS estima un valor inicial de $938.90 – $968.90 (93.9%–96.9% del valor nominal), indicando costos de suscripción/estructuración.
El producto es adecuado para inversionistas que buscan ingresos actuales mejorados a cambio de aceptar el riesgo de caída de una acción individual y un potencial limitado de ganancia. No es apropiado para inversionistas que requieren preservación de capital o diversificación amplia.
노바스코샤 은행(BNS)은 홈디포(The Home Depot, Inc., HD)의 보통주와 연계된 조건부 수익 자동상환 증권을 마케팅하고 있습니다. $1,000 단위로 발행된 이 채권은 2028년 7월 14일에 만기(3년 만기)되며 BNS의 선순위 채권 프로그램 시리즈 A에 따라 발행됩니다. 투자자는 HD 종가가 80% 하락 임계치 이상인 결정일마다 분기별 2.50% (연 10.00%) 조건부 쿠폰을 받게 됩니다. 만약 최종 결정일을 제외한 분기별 결정일에 HD 가격이 100% 상환 임계치 이상이면, 채권은 액면가와 현재 쿠폰을 더한 금액으로 자동 상환되어 향후 지급이 종료됩니다.
만기 시 채권이 상환되지 않았다면: (i) 최종 HD 가격이 초기 가격의 80% 이상이면 보유자는 액면가와 최종 쿠폰을 받습니다; (ii) 최종 가격이 80% 미만이면 상환금은 액면가 × (최종가격/초기가격)으로, 투자자는 최소 20% 이상의 원금 손실과 잠재적 전액 손실 위험에 노출됩니다.
주요 구조적 특징은 다음과 같습니다:
- 원금 위험; 조건부 쿠폰 외에는 주식 상승에 대한 참여 없음.
- BNS 신용 위험; 선순위 무담보 채무, FDIC 보험 미적용.
- 제한된 유동성; 증권은 상장되지 않으며, 2차 시장이 존재할 경우 Scotia Capital (USA) Inc.가 최선의 노력으로만 제공합니다.
- BNS는 초기 가치를 $938.90 – $968.90(액면가의 93.9%–96.9%)로 추정하며, 이는 인수/구조화 비용을 반영합니다.
이 상품은 단일 주식 하락 위험과 제한된 상승 잠재력을 감수하는 대가로 향상된 현재 수익을 원하는 투자자에게 적합합니다. 자본 보존이나 광범위한 분산 투자를 원하는 투자자에게는 적합하지 않습니다.
La Bank of Nova Scotia (BNS) commercialise des titres à revenu conditionnel auto-remboursables liés aux actions ordinaires de The Home Depot, Inc. (HD). Les billets, d'une valeur nominale de 1 000 $, arrivent à échéance le 14 juillet 2028 (durée de trois ans) et sont émis dans le cadre du programme de billets seniors, série A, de BNS. Les investisseurs recevront un coupon conditionnel de 2,50 % par trimestre (10,00 % par an) pour toute date de constatation où le cours de clôture de HD est égal ou supérieur au seuil de baisse de 80 %. Si, à une date de constatation trimestrielle (autre que la dernière), le cours de HD est égal ou supérieur au seuil d’appel de 100 %, les billets seront automatiquement remboursés à leur valeur nominale plus le coupon en cours, mettant fin aux paiements futurs.
À l’échéance, si les billets n’ont pas été appelés : (i) lorsque le cours final de HD est ≥ 80 % du prix initial, les détenteurs reçoivent la valeur nominale plus le coupon final ; (ii) lorsque le cours final est < 80 %, le remboursement est de valeur nominale × (prix final/prix initial), exposant les investisseurs à une perte en capital d’au moins 20 % et potentiellement à une perte totale.
Les principales caractéristiques structurelles incluent :
- Capital à risque ; pas de participation à la hausse des actions au-delà des coupons conditionnels.
- Risque de crédit BNS ; obligations senior non garanties, non assurées par la FDIC.
- Liquidité limitée ; les titres ne seront pas cotés et le marché secondaire, le cas échéant, sera assuré uniquement sur une base de meilleurs efforts par Scotia Capital (USA) Inc.
- BNS estime la valeur initiale entre 938,90 $ et 968,90 $ (93,9 %–96,9 % de la valeur nominale), ce qui reflète les coûts de souscription/structuration.
Ce produit convient aux investisseurs recherchant un revenu courant amélioré en échange d’un risque de baisse lié à une action unique et d’un potentiel de hausse limité. Il n’est pas adapté aux investisseurs exigeant la préservation du capital ou une large diversification.
Die Bank of Nova Scotia (BNS) bietet Contingent Income Auto-Callable Securities an, die an die Stammaktien von The Home Depot, Inc. (HD) gekoppelt sind. Die auf $1.000 lautenden Notes laufen bis zum 14. Juli 2028 (dreijährige Laufzeit) und werden im Rahmen des Senior Note Programms, Serie A, von BNS ausgegeben. Anleger erhalten einen bedingten Kupon von 2,50% pro Quartal (10,00% p.a.), sofern der Schlusskurs von HD an einem Feststellungstag auf oder über der 80%-Abwärtsgrenze liegt. Liegt der HD-Kurs an einem Quartalsfeststellungstag (außer dem letzten) auf oder über der 100%-Call-Schwelle, werden die Notes automatisch zum Nennwert zuzüglich des aktuellen Kupons zurückgezahlt, womit zukünftige Zahlungen enden.
Bei Fälligkeit, falls die Notes nicht zurückgerufen wurden: (i) wenn der finale HD-Kurs ≥ 80% des Anfangskurses ist, erhalten die Inhaber den Nennwert plus den letzten Kupon; (ii) ist der finale Kurs < 80%, erfolgt die Rückzahlung in Höhe von Nennwert × (finaler/anfänglicher Kurs), wodurch Anleger einem Kapitalverlust von mindestens 20% und potenziell Totalverlust ausgesetzt sind.
Wesentliche strukturelle Merkmale sind:
- Kapitalrisiko; keine Beteiligung an Kurssteigerungen über die bedingten Kupons hinaus.
- BNS-Kreditrisiko; unbesicherte Seniorverbindlichkeiten, nicht FDIC-versichert.
- Begrenzte Liquidität; die Wertpapiere werden nicht börslich gehandelt, und ein Sekundärmarkt wird, falls vorhanden, nur auf Best-Effort-Basis von Scotia Capital (USA) Inc. bereitgestellt.
- BNS schätzt den Anfangswert auf $938,90 – $968,90 (93,9%–96,9% des Nennwerts), was Zeichnungs-/Strukturierungskosten widerspiegelt.
Das Produkt eignet sich für Anleger, die ein erhöhtes laufendes Einkommen suchen und bereit sind, das Abwärtsrisiko einer Einzelaktie sowie begrenztes Aufwärtspotenzial zu akzeptieren. Es ist ungeeignet für Anleger, die Kapitalerhalt oder breite Diversifikation wünschen.
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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 2, 2025 |
Contingent Income Auto-Callable Securities due on or about July 14, 2028
Based on the Performance of the Common Stock of The Home Depot, 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 The Home Depot, Inc. (Bloomberg Ticker: “HD UN”) |
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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 11, 2025 |
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Original issue date: |
July 16, 2025 (3 business days after the pricing date; see preliminary pricing supplement). |
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Final determination date: |
July 11, 2028, subject to postponement for certain market disruption events and as described in the accompanying product supplement. |
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Maturity date: |
July 14, 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. |
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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 a contingent quarterly coupon of $25.00 (equivalent to 10.00% per annum of the stated principal amount) per security on the related contingent coupon payment date. ▪If the closing price on any determination date is less than the downside threshold price, we will not pay a contingent quarterly coupon with respect to that determination date. |
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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 ▪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 80.00% 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: |
80.00% 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: |
06419DAH6 / US06419DAH61 |
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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 $938.90 and $968.90 per security. See “Risk Factors” in the preliminary pricing supplement. |
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Preliminary pricing supplement: |
http://www.sec.gov/Archives/edgar/data/9631/000183988225036564/bns_424b2-19822.htm |
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HYPOTHETICAL PAYOUT |
The below figures are based on a hypothetical downside threshold price of 80.00% 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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-21.00% |
$790.00 |
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-30.00% |
$700.00 |
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-40.00% |
$600.00 |
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-50.00% |
$500.00 |
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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 |
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You will find a link to the accompanying preliminary pricing supplement for the securities above and links to the accompanying product supplement and accompanying prospectus for the securities under “Additional Information About BNS and the Securities” in the preliminary pricing supplement, which you should read and understand prior to investing in the securities.
The issuer has filed a registration statement (including a prospectus as supplemented by a prospectus supplement, product supplement and the preliminary pricing supplement) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the accompanying prospectus in that registration statement and the other documents the issuer has filed with the SEC, including the accompanying preliminary pricing supplement and the accompanying prospectus supplement and product supplement, for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling (212) 225-5678. Our Central Index Key, or CIK, on the SEC web site is 0000009631.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to Return Characteristics
▪Risk of loss at maturity.
▪Contingent repayment of stated principal amount only at maturity.
▪You may not receive any contingent quarterly coupons.
▪Greater expected volatility with respect to the underlying stock generally reflects a higher contingent quarterly coupon and a higher expectation as of the pricing date that the final share price of the underlying stock could be less than the downside threshold price on the final determination date.
▪The securities are subject to reinvestment risk in the event of an early redemption.
▪The contingent quarterly coupon, if any, is based solely on the closing price or the final share price, as applicable.
▪Your potential return on the securities is limited, you will not participate in any appreciation of the underlying stock and you will not realize a return beyond the returns represented by the contingent quarterly coupons received, if any, during the term of the securities.
Risks Relating to Characteristics of the Underlying Stock
▪The securities are subject to risks associated with investments in single equity securities.
▪There can be no assurance that the investment view implicit in the securities will be successful.
▪There is no affiliation between BNS and the underlying stock issuer.
Risks Relating to Estimated Value and Liquidity
▪BNS’ initial estimated value of the securities at the time of pricing (when the terms of your securities are set on the pricing date) will be lower than the issue price of the securities.
▪Neither BNS’ nor SCUSA’s estimated value of the securities at any time is determined by reference to credit spreads or the borrowing rate BNS would pay for its conventional fixed-rate debt securities.
▪BNS’ initial estimated value of the securities does not represent future values of the securities and may differ from others’ (including SCUSA’s) estimates.
▪The securities have limited liquidity.
▪The price at which SCUSA would buy or sell your securities (if SCUSA makes a market, which it is not obligated to do) will be based on SCUSA’s estimated value of your securities.
▪The price of the securities prior to maturity will depend on a number of factors and may be substantially less than the stated principal amount.
Risks Relating to General Credit Characteristics
▪Payments on the securities are subject to the credit risk of BNS.
Risks Relating to Hedging Activities and Conflicts of Interest
▪Hedging activities by BNS and SCUSA may negatively impact investors in the securities and cause our respective interests and those of our clients and counterparties to be contrary to those of investors in the securities.
▪The calculation agent can make antidilution and other adjustments that may adversely affect the market value of, and any amounts payable on, the securities.
▪We, SCUSA and our other affiliates regularly provide services to, or otherwise have business relationships with, a broad client base, which has included and may include us and the underlying stock issuer and the market activities by us, SCUSA or our other affiliates for our or their own respective accounts or for our clients could negatively impact investors in the securities.
▪Activities conducted by BNS and its affiliates may impact the market price of the underlying stock and the value of the securities.
▪The calculation agent will have significant discretion with respect to the securities, which may be exercised in a manner that is adverse to your interests.
▪BNS and its affiliates may publish research or make opinions or recommendations that are inconsistent with an investment in the securities.
Risks Relating to Canadian and U.S. Federal Income Taxation
▪Uncertain tax treatment. Significant aspects of the tax treatment of the securities are uncertain. You should consult your tax advisor about your tax situation. See “Additional Information About the Securities — Tax Considerations” and “— Material Canadian Income Tax Consequences” in the preliminary pricing supplement.
Underlying Stock
For information about the underlying stock, including historical performance information, see “Information About the Underlying Stock” in the preliminary pricing supplement.
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FAQ
What is the coupon rate on BNS's Contingent Income Auto-Callable Securities?
Under what conditions will the BNS notes be automatically called?
How much principal can I lose if Home Depot stock falls sharply?
Are the securities listed on an exchange?
What is the estimated value of the securities at pricing?
