The Bank of Nova Scotia filed a free writing prospectus on October 30, 2026, disclosing the term sheet for principal-at-risk, auto-callable market linked securities linked to the lowest performing of three equity indices, with a stated maturity date of December 5, 2029.

Key Highlights

  • Face amount: $1,000 per security, with denominations in any integral multiple of $1,000.
  • Auto-call feature: If the lowest performing index on the call date (December 3, 2027) is at or above its starting level, investors receive the face amount plus a call premium of 15.00%, or $150.00 per $1,000.
  • Contingent minimum return: At least 39.70% of face amount (at least $397.00 per $1,000) if not called and the lowest performing index ends at or above its starting level.
  • Threshold level: 70% of each index's starting level; ending below this level exposes investors to full downside loss, potentially all of the face amount.
  • Estimated value: Between $925.84 (92.584%) and $955.84 (95.584%) per $1,000 face amount if priced on the filing date.
  • Dealer compensation: Wells Fargo Securities, LLC receives a discount of up to 2.575%; selling concession up to 2.00% for dealers including Wells Fargo Advisors, LLC, which may also receive a distribution expense fee of 0.075%.
  • Upside participation rate: 100%, applicable only if the securities are not automatically called and the lowest performing index ends at or above its starting level.

Structure and Payout Terms for the Bank of Nova Scotia's Index-Linked Securities

According to the filing, the securities are issued under The Bank of Nova Scotia's Senior Note Program, Series A, and are registered under Registration No. 333-298611. The three market measures are the Nasdaq-100 Index, the Russell 2000 Index, and the S&P 500 Index. The pricing date is set for November 30, 2026, and the issue date is December 3, 2026, both subject to change. The CUSIP is 06419TV47 and the ISIN is US06419TV473. The filing does not list an exchange or ticker symbol for the securities themselves on a registered-securities table; the issuer, The Bank of Nova Scotia, is referenced throughout.

The filing discloses three possible maturity payment outcomes if the securities are not automatically called. If the ending level of the lowest performing index is at or above its starting level, investors receive $1,000 plus the greater of the contingent minimum return or the product of $1,000 and the index return multiplied by the 100% upside participation rate. If the ending level is below the starting level but at or above 70% of the starting level, investors receive $1,000. If the ending level falls below the threshold level, investors receive $1,000 plus the product of $1,000 and the (negative) index return of the lowest performing index, meaning full downside exposure and potential loss of the entire face amount.

The calculation agent is Scotia Capital Inc., described as an affiliate of the Bank. Agents for distribution are Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC. The filing notes that the Bank's estimated value of the securities is lower than the original offering price, and cautions that the inclusion of dealer spread and projected profit from hedging in the original offering price "is likely to adversely affect secondary market prices." No periodic interest is paid on the securities, and the filing states the securities lack liquidity.

What Was Disclosed

The Bank of Nova Scotia disclosed the term sheet for auto-callable, principal-at-risk equity index linked securities due December 5, 2029, tied to the lowest performing of three major indices, with a 15.00% call premium, a 70% threshold level, and an estimated value below the $1,000 offering price.