The Bank of Nova Scotia filed a free writing prospectus on November 3, 2026, disclosing preliminary terms for Autocallable Strategic Accelerated Redemption Securities linked to the S&P 500 Index, with a maturity date in November 2029.

Key Highlights

  • Principal amount: $10.00 per unit, with an underwriting discount of $0.20 per unit and a hedging-related charge of $0.05 per unit.
  • Call amounts: $10.75 to $10.85 per unit if called on the first Observation Date, $11.50 to $11.70 on the second, and $12.25 to $12.55 on the final Observation Date.
  • Initial estimated value: Expected to be between $9.30 and $9.60 per unit as of the pricing date, less than the $10.00 public offering price.
  • Downside risk: If not called, investors face 1-to-1 downside exposure to decreases in the Index, with up to 100.00% of principal at risk.
  • Volume discount: Purchases of 300,000 units or more in a single transaction carry a reduced public offering price of $9.95 per unit and an underwriting discount of $0.15 per unit.
  • No exchange listing: The notes will not be listed on any exchange, and secondary market liquidity is described as limited.
  • Credit risk: All payments are subject to the credit risk of The Bank of Nova Scotia, and the notes are not insured by the CDIC, FDIC, or any other governmental agency.

Preliminary Terms of Bank of Nova Scotia's S&P 500-Linked Autocallable Notes

According to the filing, The Bank of Nova Scotia (NYSE:BNS) is offering senior unsecured debt securities structured as Autocallable Strategic Accelerated Redemption Securities linked to the S&P 500 Index, with a term of approximately three years if not called on either of the first two Observation Dates. The notes are being distributed by BofA Securities, with BofA Securities, Inc. serving as Calculation Agent. The filing was submitted pursuant to Rule 433 under Registration Statement No. 333-298611.

The filing discloses that the notes will be automatically called if the closing level of the S&P 500 Index on any Observation Date, occurring approximately one, two, and three years after the pricing date, is at or above the Starting Value, defined as the closing level of the Index on the pricing date. The Call Level is set at 100.00% of the Starting Value. Call Premiums range from 7.50% to 8.50% of principal if called on the first Observation Date, 15.00% to 17.00% on the second, and 22.50% to 25.50% on the final Observation Date. Actual Call Amounts and Call Premiums will be determined on the pricing date, which remains blank in this preliminary term sheet.

The filing states that the initial estimated value range was determined using the issuer's internal pricing models, accounting for its internal funding rate and assumptions about market parameters. The filing notes that the internal funding rate "is typically lower than the rate we would pay when we issue conventional fixed rate debt securities," and that this difference, combined with the underwriting discount and hedging-related charge, reduces the economic terms to investors. The Threshold Value is set at 100.00% of the Starting Value, meaning investors will lose all or a portion of their principal if the Ending Value is below the Starting Value at maturity.

What Was Disclosed

The Bank of Nova Scotia filed a preliminary free writing prospectus outlining the terms of autocallable structured notes linked to the S&P 500 Index, with a $10.00 principal per unit, potential call premiums of up to 25.50%, full principal downside risk if not called, and an initial estimated value below the offering price.