[FWP] Toronto Dominion Bank Free Writing Prospectus
Toronto-Dominion Bank (TD) is marketing two-year, $10 par value Capped Notes with an Absolute Return Buffer linked to the MSCI® Emerging Markets Index (MXEF). At maturity, investors receive:
- Upside participation: 1-to-1 exposure to index appreciation, capped at a redemption value between $11.80 and $12.20 (18%-22% maximum gain).
- Buffer on moderate declines: If the index ends between 90% and 100% of its starting level, the notes pay the absolute value of the decline (e.g., -5% index = +5% note return).
- Downside risk: For index drops beyond 10%, the notes lose value point-for-point, exposing up to 90% of principal.
The notes pay no coupons, are not listed on any exchange, and their value depends on TD’s creditworthiness. The initial estimated value set on pricing will be below the public offering price, implying immediate negative yield if sold prior to maturity. Investors also face emerging-market equity, currency, and liquidity risks. Full terms, tax considerations, and risk factors are contained in the linked preliminary prospectus and product supplement.
La Toronto-Dominion Bank (TD) offre Note Capped biennali con valore nominale di $10 e un Buffer di Rendimento Assoluto collegato all'MSCI® Emerging Markets Index (MXEF). Alla scadenza, gli investitori ricevono:
- Partecipazione al rialzo: esposizione 1 a 1 all’apprezzamento dell’indice, con un valore di rimborso massimo compreso tra $11,80 e $12,20 (guadagno massimo del 18%-22%).
- Protezione da cali moderati: se l’indice termina tra il 90% e il 100% del valore iniziale, le note pagano il valore assoluto del calo (es. -5% indice = +5% rendimento della nota).
- Rischio al ribasso: per cali dell’indice oltre il 10%, le note perdono valore punto per punto, esponendo fino al 90% del capitale.
Le note non pagano cedole, non sono quotate in alcun mercato e il loro valore dipende dalla solidità creditizia di TD. Il valore stimato iniziale al momento della quotazione sarà inferiore al prezzo di offerta pubblica, implicando un rendimento negativo immediato se vendute prima della scadenza. Gli investitori sono inoltre esposti a rischi legati all’equity dei mercati emergenti, alle valute e alla liquidità. I termini completi, le considerazioni fiscali e i fattori di rischio sono contenuti nel prospetto preliminare e nel supplemento prodotto collegati.
Toronto-Dominion Bank (TD) está ofreciendo Notas Capped a dos años con un valor nominal de $10 y un Buffer de Retorno Absoluto vinculado al MSCI® Emerging Markets Index (MXEF). Al vencimiento, los inversionistas reciben:
- Participación al alza: exposición 1 a 1 a la apreciación del índice, con un valor de redención limitado entre $11.80 y $12.20 (ganancia máxima del 18%-22%).
- Protección ante caídas moderadas: si el índice termina entre el 90% y el 100% de su nivel inicial, las notas pagan el valor absoluto de la caída (ej. -5% índice = +5% retorno de la nota).
- Riesgo a la baja: para caídas del índice mayores al 10%, las notas pierden valor punto por punto, exponiendo hasta el 90% del principal.
Las notas no pagan cupones, no están listadas en ninguna bolsa y su valor depende de la solvencia crediticia de TD. El valor estimado inicial al momento de la emisión será inferior al precio de oferta pública, lo que implica un rendimiento negativo inmediato si se venden antes del vencimiento. Los inversionistas también enfrentan riesgos de acciones, divisas y liquidez en mercados emergentes. Los términos completos, consideraciones fiscales y factores de riesgo están contenidos en el prospecto preliminar y suplemento del producto vinculados.
토론토-도미니언 은행(TD)은 MSCI® 이머징 마켓 지수(MXEF)에 연동된 2년 만기, 액면가 $10의 캡드 노트를 절대 수익 버퍼와 함께 판매하고 있습니다. 만기 시 투자자는 다음을 받습니다:
- 상승 참여: 지수 상승에 1대1로 노출되며, 상환 가치는 $11.80에서 $12.20 사이로 제한됩니다(최대 18%-22% 수익).
- 중간 하락에 대한 버퍼: 지수가 시작 수준의 90%에서 100% 사이에 마감하면, 노트는 하락폭의 절대값을 지급합니다(예: 지수 -5% = 노트 수익 +5%).
- 하락 위험: 지수가 10% 이상 하락하면 노트 가치는 1포인트씩 감소하며, 최대 90%의 원금 손실 위험이 있습니다.
노트는 쿠폰을 지급하지 않으며, 어느 거래소에도 상장되어 있지 않고, 가치가 TD의 신용도에 따라 달라집니다. 가격 책정 시 설정된 초기 추정 가치는 공모가보다 낮아 만기 전에 매도 시 즉각적인 음의 수익률이 발생합니다. 투자자는 또한 신흥시장 주식, 통화 및 유동성 위험에 노출됩니다. 전체 조건, 세금 고려사항 및 위험 요소는 연결된 예비 설명서와 상품 보충서에 포함되어 있습니다.
La Toronto-Dominion Bank (TD) commercialise des Notes Capped de deux ans, d’une valeur nominale de 10 $, avec un Buffer de Rendement Absolu lié à l'MSCI® Emerging Markets Index (MXEF). À l’échéance, les investisseurs reçoivent :
- Participation à la hausse : exposition 1 pour 1 à l’appréciation de l’indice, plafonnée à une valeur de remboursement comprise entre 11,80 $ et 12,20 $ (gain maximum de 18 % à 22 %).
- Protection contre les baisses modérées : si l’indice termine entre 90 % et 100 % de son niveau initial, les notes versent la valeur absolue de la baisse (ex. : indice -5 % = rendement de la note +5 %).
- Risque à la baisse : pour les baisses de l’indice supérieures à 10 %, les notes perdent de la valeur point par point, exposant jusqu’à 90 % du capital.
Les notes ne versent aucun coupon, ne sont pas cotées en bourse et leur valeur dépend de la solvabilité de TD. La valeur estimée initiale fixée lors de la tarification sera inférieure au prix d’offre public, impliquant un rendement négatif immédiat en cas de revente avant l’échéance. Les investisseurs sont également exposés aux risques liés aux actions des marchés émergents, aux devises et à la liquidité. Les conditions complètes, considérations fiscales et facteurs de risque figurent dans le prospectus préliminaire et le supplément produit liés.
Die Toronto-Dominion Bank (TD) bietet zweijährige Capped Notes mit einem Nennwert von $10 und einem Absolute Return Buffer, die an den MSCI® Emerging Markets Index (MXEF) gekoppelt sind. Bei Fälligkeit erhalten Anleger:
- Aufwärtsteilnahme: 1:1 Beteiligung an der Indexsteigerung, begrenzt auf einen Rückzahlungswert zwischen $11,80 und $12,20 (maximaler Gewinn von 18%-22%).
- Schutz bei moderaten Rückgängen: Liegt der Index am Ende zwischen 90% und 100% des Anfangswerts, zahlen die Notes den absoluten Wert des Rückgangs (z.B. -5% Index = +5% Rendite der Note).
- Abwärtsrisiko: Bei Indexverlusten über 10% verlieren die Notes Punkt für Punkt an Wert und setzen bis zu 90% des Kapitals einem Risiko aus.
Die Notes zahlen keine Kupons, sind nicht an einer Börse gelistet und ihr Wert hängt von der Kreditwürdigkeit von TD ab. Der initial geschätzte Wert bei der Preisfestsetzung liegt unter dem öffentlichen Angebotspreis, was bei Verkauf vor Fälligkeit zu einer sofort negativen Rendite führt. Anleger sind zudem Risiken aus Schwellenländeraktien, Währungen und Liquidität ausgesetzt. Vollständige Bedingungen, steuerliche Hinweise und Risikofaktoren sind im verlinkten vorläufigen Prospekt und Produktergänzung enthalten.
- 10% downside buffer converts moderate index declines into positive returns, offering limited protection versus direct equity exposure.
- 18%-22% maximum upside over two years provides leveraged participation in emerging-market gains until the cap is reached.
- Up to 90% principal loss if MXEF falls more than 10% by maturity.
- Return is capped; investors forego gains above 18%-22%, underperforming direct index ownership in strong markets.
- No secondary-market liquidity or exchange listing may force investors to hold to maturity.
- Credit exposure to TD; deterioration in the bank’s credit spreads can depress note value.
- Initial estimated value below offer price embeds an immediate cost to investors.
- No periodic interest, lowering total return in flat markets.
Insights
TL;DR Two-year MXEF-linked notes offer 10% downside buffer and 18%-22% upside cap; principal risk remains significant and liquidity is limited.
Analysis: The structure suits investors seeking tactical emerging-market exposure with some protection against moderate declines. The 10% absolute-value buffer converts small losses into gains, but once breached, losses accelerate 1-for-1 down to 10 cents on the dollar. A capped maximum return of 18%-22% limits upside compared with direct MXEF ownership. Lack of periodic income and estimated issue-price premium reduce risk-adjusted appeal. Credit risk is remote for an AA-rated Canadian bank, yet still present. Overall, risk/return trade-off is neutral for diversified portfolios and not material to TD’s earnings.
La Toronto-Dominion Bank (TD) offre Note Capped biennali con valore nominale di $10 e un Buffer di Rendimento Assoluto collegato all'MSCI® Emerging Markets Index (MXEF). Alla scadenza, gli investitori ricevono:
- Partecipazione al rialzo: esposizione 1 a 1 all’apprezzamento dell’indice, con un valore di rimborso massimo compreso tra $11,80 e $12,20 (guadagno massimo del 18%-22%).
- Protezione da cali moderati: se l’indice termina tra il 90% e il 100% del valore iniziale, le note pagano il valore assoluto del calo (es. -5% indice = +5% rendimento della nota).
- Rischio al ribasso: per cali dell’indice oltre il 10%, le note perdono valore punto per punto, esponendo fino al 90% del capitale.
Le note non pagano cedole, non sono quotate in alcun mercato e il loro valore dipende dalla solidità creditizia di TD. Il valore stimato iniziale al momento della quotazione sarà inferiore al prezzo di offerta pubblica, implicando un rendimento negativo immediato se vendute prima della scadenza. Gli investitori sono inoltre esposti a rischi legati all’equity dei mercati emergenti, alle valute e alla liquidità. I termini completi, le considerazioni fiscali e i fattori di rischio sono contenuti nel prospetto preliminare e nel supplemento prodotto collegati.
Toronto-Dominion Bank (TD) está ofreciendo Notas Capped a dos años con un valor nominal de $10 y un Buffer de Retorno Absoluto vinculado al MSCI® Emerging Markets Index (MXEF). Al vencimiento, los inversionistas reciben:
- Participación al alza: exposición 1 a 1 a la apreciación del índice, con un valor de redención limitado entre $11.80 y $12.20 (ganancia máxima del 18%-22%).
- Protección ante caídas moderadas: si el índice termina entre el 90% y el 100% de su nivel inicial, las notas pagan el valor absoluto de la caída (ej. -5% índice = +5% retorno de la nota).
- Riesgo a la baja: para caídas del índice mayores al 10%, las notas pierden valor punto por punto, exponiendo hasta el 90% del principal.
Las notas no pagan cupones, no están listadas en ninguna bolsa y su valor depende de la solvencia crediticia de TD. El valor estimado inicial al momento de la emisión será inferior al precio de oferta pública, lo que implica un rendimiento negativo inmediato si se venden antes del vencimiento. Los inversionistas también enfrentan riesgos de acciones, divisas y liquidez en mercados emergentes. Los términos completos, consideraciones fiscales y factores de riesgo están contenidos en el prospecto preliminar y suplemento del producto vinculados.
토론토-도미니언 은행(TD)은 MSCI® 이머징 마켓 지수(MXEF)에 연동된 2년 만기, 액면가 $10의 캡드 노트를 절대 수익 버퍼와 함께 판매하고 있습니다. 만기 시 투자자는 다음을 받습니다:
- 상승 참여: 지수 상승에 1대1로 노출되며, 상환 가치는 $11.80에서 $12.20 사이로 제한됩니다(최대 18%-22% 수익).
- 중간 하락에 대한 버퍼: 지수가 시작 수준의 90%에서 100% 사이에 마감하면, 노트는 하락폭의 절대값을 지급합니다(예: 지수 -5% = 노트 수익 +5%).
- 하락 위험: 지수가 10% 이상 하락하면 노트 가치는 1포인트씩 감소하며, 최대 90%의 원금 손실 위험이 있습니다.
노트는 쿠폰을 지급하지 않으며, 어느 거래소에도 상장되어 있지 않고, 가치가 TD의 신용도에 따라 달라집니다. 가격 책정 시 설정된 초기 추정 가치는 공모가보다 낮아 만기 전에 매도 시 즉각적인 음의 수익률이 발생합니다. 투자자는 또한 신흥시장 주식, 통화 및 유동성 위험에 노출됩니다. 전체 조건, 세금 고려사항 및 위험 요소는 연결된 예비 설명서와 상품 보충서에 포함되어 있습니다.
La Toronto-Dominion Bank (TD) commercialise des Notes Capped de deux ans, d’une valeur nominale de 10 $, avec un Buffer de Rendement Absolu lié à l'MSCI® Emerging Markets Index (MXEF). À l’échéance, les investisseurs reçoivent :
- Participation à la hausse : exposition 1 pour 1 à l’appréciation de l’indice, plafonnée à une valeur de remboursement comprise entre 11,80 $ et 12,20 $ (gain maximum de 18 % à 22 %).
- Protection contre les baisses modérées : si l’indice termine entre 90 % et 100 % de son niveau initial, les notes versent la valeur absolue de la baisse (ex. : indice -5 % = rendement de la note +5 %).
- Risque à la baisse : pour les baisses de l’indice supérieures à 10 %, les notes perdent de la valeur point par point, exposant jusqu’à 90 % du capital.
Les notes ne versent aucun coupon, ne sont pas cotées en bourse et leur valeur dépend de la solvabilité de TD. La valeur estimée initiale fixée lors de la tarification sera inférieure au prix d’offre public, impliquant un rendement négatif immédiat en cas de revente avant l’échéance. Les investisseurs sont également exposés aux risques liés aux actions des marchés émergents, aux devises et à la liquidité. Les conditions complètes, considérations fiscales et facteurs de risque figurent dans le prospectus préliminaire et le supplément produit liés.
Die Toronto-Dominion Bank (TD) bietet zweijährige Capped Notes mit einem Nennwert von $10 und einem Absolute Return Buffer, die an den MSCI® Emerging Markets Index (MXEF) gekoppelt sind. Bei Fälligkeit erhalten Anleger:
- Aufwärtsteilnahme: 1:1 Beteiligung an der Indexsteigerung, begrenzt auf einen Rückzahlungswert zwischen $11,80 und $12,20 (maximaler Gewinn von 18%-22%).
- Schutz bei moderaten Rückgängen: Liegt der Index am Ende zwischen 90% und 100% des Anfangswerts, zahlen die Notes den absoluten Wert des Rückgangs (z.B. -5% Index = +5% Rendite der Note).
- Abwärtsrisiko: Bei Indexverlusten über 10% verlieren die Notes Punkt für Punkt an Wert und setzen bis zu 90% des Kapitals einem Risiko aus.
Die Notes zahlen keine Kupons, sind nicht an einer Börse gelistet und ihr Wert hängt von der Kreditwürdigkeit von TD ab. Der initial geschätzte Wert bei der Preisfestsetzung liegt unter dem öffentlichen Angebotspreis, was bei Verkauf vor Fälligkeit zu einer sofort negativen Rendite führt. Anleger sind zudem Risiken aus Schwellenländeraktien, Währungen und Liquidität ausgesetzt. Vollständige Bedingungen, steuerliche Hinweise und Risikofaktoren sind im verlinkten vorläufigen Prospekt und Produktergänzung enthalten.
Registration Statement No. 333-283969
|
CAPPED NOTES WITH ABSOLUTE RETURN BUFFER (CAPPED NOTES)
|
|
Capped Notes with Absolute Return Buffer Linked to the MSCI® Emerging Markets IndexSM
|
|
Issuer
|
The Toronto-Dominion Bank (“TD”)
|
||
|
Principal Amount
|
$10.00 per unit
|
||
|
Term
|
Approximately two years
|
||
|
Market Measure
|
The MSCI® Emerging Markets IndexSM (Bloomberg symbol: “MXEF”)
|
||
|
Payout Profile at Maturity
|
● 1-to-1 upside exposure to increases in the
Market Measure, subject to the Capped Value
● A positive return equal to the absolute value of the percentage decline in the level of the Market Measure only if the Market Measure does not decline by more than 10.00% (e.g., if the negative return of the Market Measure is -5%,
you will receive a positive return of +5%)
● 1-to-1 downside exposure to decreases in the Market Measure beyond a 10.00% decline, with up to 90.00% of your principal at risk
|
||
|
Capped Value
|
[$11.80 to $12.20] per unit, a [18.00% to 22.00%] return over the principal amount, to be determined on the pricing date
|
||
|
Threshold Value
|
90.00% of the Starting Value
|
||
|
Interest Payments
|
None
|
||
|
Preliminary Offering Documents
|
http://www.sec.gov/Archives/edgar/data/947263/000114036125024821/ef20051594_424b3.htm
|
||
|
Exchange Listing
|
No
|
|
●
|
Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of
principal.
|
|
●
|
Payments on the notes are subject to the credit risk of TD, and actual or perceived changes in the creditworthiness of TD are expected to affect the value of the notes. If
TD becomes unable to meet its financial obligations as they become due, you may lose some or all of your investment.
|
|
●
|
Your potential for a positive return based on the depreciation of the Market Measure is limited and may be less than that of a comparable investment that takes a short
position directly in the Market Measure (or the stocks included in the Market Measure). The absolute value return feature applies only if the Ending Value is less than the Starting Value but greater than or equal to the Threshold
Value. Because the Threshold Value is 90.00% of the Starting Value, any positive return due to the depreciation of the Market Measure is limited to 10.00%. Any decline in the Ending Value from the Starting Value by more than 10.00%
will result in a loss, rather than a positive return, on the notes. In contrast, for example, a short position in the Market Measure (or the stocks included in the Market Measure) would allow you to receive the full benefit of any
decrease in the level of the Market Measure (or the stocks included in the Market Measure).
|
|
●
|
Your investment return based on any increase in the level of the Market Measure is limited to the return represented by the Capped Value and may be less than a comparable
investment directly in the stocks included in the Market Measure.
|
|
●
|
The initial estimated value of the notes on the pricing date will be less than their public offering price.
|
|
●
|
The initial estimated value of your notes is not a prediction of the prices at which you may sell your notes in the secondary market, if any exists, and such secondary
market prices, if any, will likely be less than the public offering price of your notes, may be less than the initial estimated value of your notes and could result in a substantial loss to you.
|
|
●
|
You will have no rights of a holder of the securities represented by the Market Measure, and you will not be entitled to receive securities or dividends or other
distributions by the issuers of those securities.
|
|
●
|
The value of, and your return on, the notes may be affected by factors affecting the international securities markets, specifically changes in the countries represented by
the Market Measure. In addition, you will not obtain the benefit of any increase in the value of the currencies in which the securities in the Index trade against the U.S. dollar which you would have received if you had owned the
securities in the Market Measure during the term of your notes, although the level of the Market Measure may be adversely affected by general exchange rate movements in the market.
|
|
●
|
There are risks associated with emerging markets.
|
|
Hypothetical
Percentage Change
from the Starting
Value to the Ending
Value
|
Hypothetical
Redemption
Amount per Unit
|
Hypothetical Total
Rate of Return on
the Notes
|
|
-100.00%
|
$1.00
|
-90.00%
|
|
-75.00%
|
$3.50
|
-65.00%
|
|
-50.00%
|
$6.00
|
-40.00%
|
|
-40.00%
|
$7.00
|
-30.00%
|
|
-30.00%
|
$8.00
|
-20.00%
|
|
-20.00%
|
$9.00
|
-10.00%
|
|
-10.00%(1)
|
$11.00
|
10.00%
|
|
-5.00%
|
$10.50
|
5.00%
|
|
0.00%
|
$10.00
|
0.00%
|
|
10.00%
|
$11.00
|
10.00%
|
|
20.00%
|
$12.00(2)
|
20.00%
|
|
30.00%
|
$12.00
|
20.00%
|
|
40.00%
|
$12.00
|
20.00%
|
|
50.00%
|
$12.00
|
20.00%
|
|
(1)
|
This hypothetical percentage change corresponds to the Threshold Value.
|
|
(2)
|
Any positive return based on the appreciation of the Market Measure cannot exceed the hypothetical Capped Value.
|
FAQ
What is the maturity and principal amount of TD's Capped Notes?
How much upside can investors earn on the TD Capped Notes?
What downside protection do the notes provide?
Are interest payments made during the term?
Is there credit risk to investors in these TD notes?
Will the TD Capped Notes be listed on an exchange?
