The Bank of Nova Scotia filed a Pricing Supplement (Form 424B2) on August 4, 2026, disclosing the terms of $15,550,000 in Contingent Income Auto-Callable Securities due August 3, 2029, linked to the common stock of Citigroup Inc.

Key Highlights

  • Aggregate principal: $15,550,000, with a stated principal amount of $1,000.00 per security and an issue price of $1,000.00 per security.
  • Contingent quarterly coupon: $26.40 per security (equivalent to 10.56% per annum) is payable only if the closing price of Citigroup common stock on a determination date is greater than or equal to the downside threshold price.
  • Downside threshold price: 65.00% of the initial share price; if the final share price falls below this level, repayment will be less than 65.00% of stated principal and could be zero.
  • Auto-call feature: Securities are automatically redeemed early if Citigroup's closing price meets or exceeds the call threshold price on any determination date other than the final determination date.
  • Memory coupon feature: Previously unpaid coupons may be recovered on a later payment date if the closing price subsequently meets or exceeds the downside threshold price.
  • Maturity date: August 3, 2029, with a pricing date of July 31, 2026, and an original issue date of August 5, 2026.
  • Principal at risk: The filing states the securities "do not guarantee the repayment of principal" and all payments are subject to the credit risk of BNS.

BNS Citigroup-Linked Auto-Callable Securities: Key Terms and Risks

The Bank of Nova Scotia (NYSE: BNS), acting as issuer under its Senior Note Program, Series A, priced $15,550,000 in Contingent Income Auto-Callable Securities on July 31, 2026. According to the filing, the securities are linked to the performance of the common stock of Citigroup Inc. (Bloomberg Ticker: "C UN") and are structured as senior unsecured debt instruments maturing August 3, 2029. Twelve determination dates are scheduled between November 2, 2026, and July 31, 2029.

The filing discloses that a contingent quarterly coupon of $26.40 per security, equivalent to 10.56% per annum of the stated principal amount, is paid only when Citigroup's closing stock price on a given determination date is greater than or equal to the downside threshold price of 65.00% of the initial share price. A memory coupon feature allows previously skipped coupons to be recovered if a later determination date meets that threshold. The securities are subject to automatic early redemption if the closing price equals or exceeds the call threshold price on any non-final determination date, with the early redemption payment equal to the stated principal amount plus any applicable contingent coupons.

The filing cautions that investors "will not participate in any appreciation of the underlying stock" and that returns are limited to contingent quarterly coupons received, if any. If the final share price is below the downside threshold price, the filing states BNS will pay a cash amount per security equal to the stated principal amount multiplied by the share performance factor, which "could be zero." The filing further notes that, as senior unsecured obligations, the securities carry BNS credit risk, and a default by BNS could result in total loss of investment.

What Was Disclosed

BNS disclosed the full pricing terms of $15,550,000 in principal-at-risk auto-callable notes linked to Citigroup common stock, including coupon conditions, auto-call mechanics, a memory coupon feature, twelve determination dates, and the risk of total loss of principal.