The Bank of Nova Scotia (NYSE: BNS) filed a Pricing Supplement (Form 424B2) on August 4, 2026, disclosing the terms of $23,747,000 in Contingent Income Auto-Callable Securities due August 3, 2029, linked to the common stock of Advanced Micro Devices, Inc.

Key Highlights

  • Total offering size: $23,747,000 in aggregate principal amount, with a stated principal amount of $1,000.00 per security and a minimum investment of $1,000 (1 security).
  • Contingent quarterly coupon: $59.775 per security, equivalent to 23.91% per annum of the stated principal amount, payable only when the closing price of AMD stock on a determination date is greater than or equal to the downside threshold price.
  • Downside threshold price: 50.00% of the initial share price; if the final share price falls below this level, the payment at maturity could be less than 50.00% of the stated principal amount and could be as low as zero.
  • Auto-call feature: Securities are automatically redeemed if the closing price of AMD stock on any non-final determination date is greater than or equal to the call threshold price, with payment equal to stated principal plus any applicable contingent coupons.
  • Memory coupon feature: Previously unpaid contingent quarterly coupons may be paid on a later coupon payment date if the closing price on the corresponding determination date meets or exceeds the downside threshold price.
  • Pricing date and original issue date: Priced on July 31, 2026, with an original issue date of August 5, 2026, and a maturity date of August 3, 2029.
  • Credit risk: All payments are subject to the credit risk of BNS; the securities are senior unsecured debt and are not secured by any underlying reference asset.

Key Terms of the AMD-Linked Contingent Income Securities Issued by BNS

According to the filing, The Bank of Nova Scotia issued these securities under its Senior Note Program, Series A, with the underlying stock being the common stock of Advanced Micro Devices, Inc. (Bloomberg Ticker: "AMD UW"). The securities were priced on July 31, 2026, and are scheduled to mature on August 3, 2029, with twelve quarterly determination dates running from November 2, 2026, through July 31, 2029. The filing notes that the original issue date is August 5, 2026, three business days after the pricing date, and flags specific secondary-market settlement considerations under Rule 15c6-1 of the Securities Exchange Act of 1934.

The filing describes the contingent quarterly coupon as $59.775 per security (23.91% per annum) paid only on determination dates where AMD's closing price is greater than or equal to 50.00% of the initial share price. The memory coupon feature, as disclosed, allows previously skipped coupons to be recovered on a later payment date if the threshold condition is subsequently met, though each skipped coupon can only be recovered once. The securities will be automatically redeemed early if AMD's closing price equals or exceeds the call threshold price on any non-final determination date, at which point no further payments are made.

The filing emphasizes the principal-at-risk nature of these securities. As stated in the document, "if the final share price of the underlying stock is less than the downside threshold price, BNS will pay you a cash payment per security that will be less than 50.00% of the stated principal amount and could be zero." The filing also notes that investors "will not participate in any appreciation of the underlying stock" and that returns are limited to any contingent quarterly coupons received during the term. The company's forward-looking statements and risk characterizations in the filing are the company's own and are subject to its cautionary language.

What Was Disclosed

BNS disclosed the full pricing terms of $23,747,000 in principal-at-risk, auto-callable structured notes linked to AMD stock, including the 23.91% per annum contingent coupon rate, the 50.00% downside threshold, auto-call mechanics, memory coupon feature, and the risk of total loss of principal.