The Bank of Nova Scotia filed a Form 424B2 pricing supplement dated July 31, 2026, detailing the terms of $859,000 in principal-at-risk securities linked to the Russell 2000 Index, with a stated maturity date of August 3, 2029.

Key Highlights

  • Total offering size: $859,000 at an original offering price of $1,000 per security.
  • Auto-call feature: If the Index closing level on August 5, 2027 is at or above the starting level, securities are automatically called at face amount plus a 10.75% call premium ($107.50 per $1,000).
  • Upside participation: If not called and the Index finishes above the starting level, investors receive 125% of the Index percentage gain.
  • Buffer protection: A 10% buffer applies on the downside; losses beyond the buffer are on a 1-to-1 basis, and investors may lose up to 90% of face amount.
  • Estimated value: The Bank's estimated value as of the pricing date is $964.80 (96.480%) per security.
  • Agent discount: $25.75 (2.575%) per security, with proceeds to the Bank of $974.25 per security.
  • No exchange listing: The securities are described as "designed to be held to maturity" and will not be listed on any exchange.

Structure and Risk Profile of the Bank of Nova Scotia's Russell 2000 Linked Securities

According to the filing, the securities are senior unsecured debt obligations of The Bank of Nova Scotia (NYSE: BNS) issued under its Senior Note Program, Series A. They are priced at $1,000 per security, with an issue date of August 5, 2026, and a stated maturity of August 3, 2029. The filing notes that the securities "do not pay interest, do not repay a fixed amount of principal at maturity," and carry automatic call provisions tied to the performance of the Russell 2000 Index.

The auto-call observation date is August 5, 2027. If the Index closes at or above its starting level on that date, the securities are called and holders receive the face amount plus the 10.75% call premium. The filing states that if the securities are automatically called, holders "will not participate in any appreciation of the Index, which may be significant." If not called, the maturity payment depends on the Index's ending level relative to the starting level, with 125% upside participation above the starting level and a 10% buffer protecting against modest declines.

The filing discloses that the Bank's estimated value of the securities as of the pricing date is $964.80 per security, which is below the $1,000 original offering price. The difference reflects, among other things, the dealer discount and projected profit from hedging. The securities are not insured by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance Corporation, or any other governmental agency, and all payments are subject to the credit risk of The Bank of Nova Scotia. Distribution is handled through Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC.

What Was Disclosed

The Bank of Nova Scotia filed a pricing supplement covering $859,000 in auto-callable, principal-at-risk securities linked to the Russell 2000 Index, maturing August 3, 2029, with a 10.75% call premium, 125% upside participation, and a 10% downside buffer.