The Bank of Nova Scotia filed a free writing prospectus on November 4, 2026, disclosing the term sheet for principal-at-risk, auto-callable equity-linked securities tied to the lowest performing of Broadcom Inc., Micron Technology, Inc., and NVIDIA Corporation, with a stated maturity of November 16, 2029.

Key Highlights

  • Underlying basket: Performance is linked solely to the lowest performing of three stocks: Broadcom Inc. (AVGO), Micron Technology, Inc. (MU), and NVIDIA Corporation (NVDA).
  • Face amount: $1,000 per security, issued in denominations of $1,000 and any integral multiple of $1,000.
  • Call premium: At least 41.00% of the face amount, or at least $410.00 per $1,000 face amount, to be determined on the pricing date of November 10, 2026.
  • Upside participation rate: 200.00% of the lowest performing underlying stock's return if not called and the ending price exceeds the starting price.
  • Threshold price: 50.00% of each underlying stock's starting price; if the ending price falls below this level, investors bear full downside exposure and may lose more than 50.00%, and possibly all, of the face amount.
  • Estimated value at pricing: Between $902.25 (90.225%) and $932.25 (93.225%) per security if the securities priced on the filing date, according to the filing.
  • Agent discount: Wells Fargo Securities, LLC will receive a discount of up to 2.575%; dealers may receive a selling concession of up to 2.00%.

Structure and Payout Terms of the Bank of Nova Scotia's November 2026 Linked Securities

According to the filing, the securities are part of The Bank of Nova Scotia's Senior Note Program, Series A, and are registered under Registration No. 333-298611. The pricing date is set for November 10, 2026, with an issue date of November 16, 2026. The calculation agent is Scotia Capital Inc., an affiliate of the Bank. The agents distributing the securities are Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC. The CUSIP is 06419UBP9 and the ISIN is US06419UBP93.

The filing describes an automatic call feature: if the stock closing price of the lowest performing underlying stock on the call date of November 16, 2027 is greater than or equal to 85.00% of its starting price (the call threshold price), the securities are automatically called and investors receive the face amount plus the call premium. The filing notes that if automatically called, investors "will not participate in any appreciation of the lowest performing Underlying Stock, which may be significant." If not called and the ending price of the lowest performing stock on the final calculation day of November 13, 2029 falls between its starting price and threshold price, investors receive $1,000 plus an amount equal to the absolute value return of that stock.

The filing identifies multiple risk considerations. The securities carry no periodic interest payments, are subject to the Bank's credit risk, and lack liquidity. The filing states that "the inclusion of dealer spread and projected profit from hedging in the original offering price is likely to adversely affect secondary market prices." Additionally, the Bank's estimated value is disclosed as lower than the original offering price. The filing specifies that these are not bank deposits and are not insured or guaranteed by the FDIC or any other governmental agency.

What Was Disclosed

The Bank of Nova Scotia disclosed a term sheet for auto-callable, principal-at-risk securities linked to the lowest performing of three equity underlyings, with a potential call premium of at least 41.00%, a 200.00% upside participation rate, and full downside exposure if the lowest performing stock falls below 50.00% of its starting price at maturity.