The Bank of Nova Scotia filed a free writing prospectus on October 29, 2026, describing Contingent Income Auto-Callable Securities with Memory Coupon due on or about November 9, 2029, linked to the common stock of Atlassian Corporation.

Key Highlights

  • Underlying stock: Common stock of Atlassian Corporation (Bloomberg Ticker: "TEAM UW"), with a stated principal amount of $1,000.00 per security and a minimum investment of $1,000 (1 security).
  • Contingent quarterly coupon: $46.125 per security (equivalent to 18.45% per annum) if the closing price on a determination date is greater than or equal to the downside threshold price.
  • Memory coupon feature: Previously unpaid coupons accumulate and are paid on the next determination date when the closing price meets or exceeds the downside threshold price; no interest accrues on unpaid coupons.
  • Call threshold price: 100.00% of the initial share price; downside threshold price is 50.00% of the initial share price.
  • Principal at risk: If the final share price is less than the downside threshold price, the payment at maturity will be less than 50.00% of the stated principal amount and could be as low as zero.
  • Estimated value on pricing date: Expected to be between $928.10 and $958.10 per security, according to the filing.
  • Commission: $22.50 per stated principal amount; the securities will not be listed on any securities exchange or electronic communications network.

Structure and Payment Terms of the Bank of Nova Scotia's 2026 Atlassian-Linked Securities

According to the filing, the securities are senior unsecured debt obligations of The Bank of Nova Scotia, issued under its Senior Note Program, Series A, with Registration Statement No. 333-298611. The pricing date is November 6, 2026, and the original issue date is November 12, 2026. All payments on the securities are subject to the credit risk of The Bank of Nova Scotia. The filing states that investors "will not participate in any appreciation of the underlying stock."

The filing describes a quarterly coupon structure conditioned on the performance of Atlassian Corporation's common stock. On each determination date, if the closing price of the underlying stock is greater than or equal to 50.00% of the initial share price, a contingent quarterly coupon of $46.125 per security is payable. If the closing price falls below that threshold, no coupon is paid for that period. The memory coupon feature, as described in the filing, allows previously skipped coupons to be paid in full on a future determination date when the threshold is met, though no interest accrues on those deferred amounts.

Early redemption occurs automatically if the closing price on any non-final determination date is greater than or equal to 100.00% of the initial share price. In that case, the filing states that investors receive the stated principal amount plus the applicable contingent quarterly coupon and any accumulated unpaid coupons. At maturity, if the final share price is less than the downside threshold price, the payment equals the stated principal amount multiplied by the share performance factor (final share price divided by initial share price), which the filing notes could be as low as zero. The CUSIP is 06419TZ84 and the ISIN is US06419TZ847.

What Was Disclosed

The Bank of Nova Scotia filed a free writing prospectus under Rule 433 summarizing the terms of principal-at-risk, auto-callable securities linked to Atlassian Corporation common stock, with a potential maturity of November 9, 2029, a 18.45% per annum contingent coupon rate, and a 50.00% downside threshold.