The Bank of Nova Scotia is offering $• Step-Down Trigger Autocallable Notes linked to the least performing of the S&P 500® Index and the EURO STOXX 50® Index, due on or about September 23, 2031. The Notes are senior, unsecured debt securities with a minimum investment of 100 Notes at $10 per Note.
Features:
- Automatic Call Feature: The Notes will be automatically called if the closing level of each underlying asset on any observation date, including the final valuation date, is equal to or greater than its call threshold level. The call threshold level is higher for observation dates prior to the final valuation date and equals the downside threshold for the final valuation date. The call return increases the longer the Notes are outstanding.
- Contingent Repayment of Principal at Maturity: If the Notes are not subject to an automatic call, the final level of at least one underlying asset will be less than its downside threshold, and BNS will pay a cash payment per Note at maturity that is less than the principal amount, resulting in a percentage loss on your principal amount equal to the underlying return of the least performing underlying asset.
Key Dates:
- Trade Date: September 18, 2026
- Settlement Date: September 23, 2026
- Observation Dates: Quarterly (callable after 12 months)
- Final Valuation Date: September 18, 2031
- Maturity Date: September 23, 2031
Underlying Assets:
- S&P 500® Index (SPX): Call Return Rate 9.00% to 9.60% per annum, Initial Level 100.00% of its Initial Level, Call Threshold Levels 100.00% of its Initial Level (prior to final valuation date) and 75.00% (final valuation date), Downside Threshold 75.00% of its Initial Level.
- EURO STOXX 50® Index (SX5E): Call Return Rate 9.00% to 9.60% per annum, Initial Level 100.00% of its Initial Level, Call Threshold Levels 100.00% of its Initial Level (prior to final valuation date) and 75.00% (final valuation date), Downside Threshold 75.00% of its Initial Level.
Investment Timeline:
- Trade Date: The initial level of each underlying asset is observed and the final terms of the Notes are set.
- Observation Dates: The Notes will be subject to an automatic call if the closing level of each underlying asset on any observation date is equal to or greater than the call threshold level. If called, BNS will pay a cash payment per Note equal to the call price for the relevant observation date.
- Maturity Date: The final level of each underlying asset is observed, and the underlying return of each underlying asset is calculated. If the Notes are not called, BNS will pay a cash payment per Note at maturity that is less than the principal amount, equal to $10 × (1 + Underlying Return of the Least Performing Underlying Asset).
Risks:
- Risk of loss at maturity: The Notes are not guaranteed to repay the principal amount at maturity. If not called, you may lose a significant portion or all of your investment.
- No interest payments: BNS will not pay any interest with respect to the Notes.
- Limited return potential: Your potential return on the Notes is limited to any call return and you will not participate in any appreciation in the level of any underlying asset.
- Market risk: You are exposed to the market risk of each underlying asset on each observation date and on the final valuation date.
- Limited liquidity: The Notes will not be listed on any securities exchange, and there may be little or no secondary market for the Notes.
- Credit risk: Any payment on the Notes, including any repayment of principal, is subject to the creditworthiness of BNS.
Tax Considerations:
- The U.S. federal income tax consequences of your investment in the Notes are uncertain.
- The Notes may be characterized as prepaid derivative contracts for U.S. federal income tax purposes.
- Non-U.S. holders may be subject to withholding tax on certain payments.
Suitability Considerations:
The Notes may be suitable for you if you fully understand and are willing to accept the risks involved, including the risk of loss of a significant portion or all of your investment. You should be comfortable with the downside market risk of the least performing underlying asset and the potential to lose a significant portion or all of your investment in the Notes.
