The Bank of Nova Scotia filed a free writing prospectus on November 5, 2026, disclosing the summary terms of Contingent Income Auto-Callable Securities due on or about November 16, 2029, linked to the common stock of Spotify Technology S.A.

Key Highlights

  • Issuer and security type: The Bank of Nova Scotia is offering senior unsecured debt securities under its Senior Note Program, Series A, with a stated principal amount of $1,000.00 per security and a minimum investment of $1,000 (1 security).
  • Underlying stock: The securities are based on the performance of the common stock of Spotify Technology S.A. (Bloomberg Ticker: "SPOT UN").
  • Contingent quarterly coupon: If the closing price on a determination date is greater than or equal to the downside threshold price, the issuer will pay $26.025 per security, equivalent to 10.41% per annum of the stated principal amount.
  • Downside threshold and call threshold: The downside threshold price is 50.00% of the initial share price; the call threshold price is 100.00% of the initial share price.
  • Principal at risk: According to the filing, 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: The estimated value on the pricing date is expected to be between $938.11 and $968.11 per security, below the $1,000.00 issue price.
  • CUSIP / ISIN: 06419UCE3 / US06419UCE38; pricing date is November 13, 2026, with an original issue date of November 18, 2026.

Terms and Risks of the Bank of Nova Scotia's Spotify-Linked Securities

According to the filing, the securities are structured as principal-at-risk instruments, meaning investors "do not guarantee any return of principal at maturity." The Bank of Nova Scotia (BNS) will issue the notes under Registration Statement No. 333-298611. All payments are subject to BNS's credit risk as senior unsecured obligations. The securities will not be listed on any securities exchange or electronic communications network, and the filing notes that liquidity is limited.

The filing describes an automatic early redemption feature: if the closing price of Spotify's common stock on any quarterly determination date (other than the final determination date) is greater than or equal to the call threshold price (100.00% of the initial share price), the securities will be redeemed at the stated principal amount plus the contingent quarterly coupon for that period. No further payments are made after redemption occurs. The filing identifies this as a source of reinvestment risk in the event of early redemption.

At maturity on November 16, 2029, if the final share price is below 50.00% of the initial share price, investors receive the stated principal amount multiplied by the share performance factor (final share price divided by initial share price). The filing's hypothetical payout table illustrates that a 60% decline in the underlying stock would produce a $400.00 payment per security, and a 100% decline would produce $0.00. The commission disclosed is $22.50 per stated principal amount. The filing notes there is no affiliation between BNS and Spotify Technology S.A.

What Was Disclosed

BNS filed a free writing prospectus summarizing the terms of Contingent Income Auto-Callable Securities linked to Spotify common stock, covering the coupon structure, threshold prices, estimated value range, maturity terms, and key risk factors associated with the offering.