The Bank of Nova Scotia filed a free writing prospectus on November 9, 2026, disclosing terms for a new issuance of Market Linked Securities callable with contingent coupon and contingent downside linked to three equity indices, due August 16, 2030.

Key Highlights

  • Linked indices: Securities are linked to the lowest performing of the Russell 2000 Index, the S&P 500 Index, and the EURO STOXX 50 Index.
  • Contingent coupon rate: At least 8.25% per annum, to be determined on the pricing date of November 13, 2026.
  • Coupon and downside threshold: Both set at 60.00% of each index's starting level.
  • Principal at risk: If the ending level of the lowest performing index falls below its downside threshold level at maturity, investors will lose more than 40.00%, and possibly all, of the $1,000 face amount per security.
  • Estimated value at pricing: Between $937.51 (93.751%) and $967.51 (96.751%) per security, according to the filing.
  • Bank call option: The Bank of Nova Scotia may redeem the securities in whole but not in part on any quarterly optional redemption date beginning approximately three months after the issue date.
  • CUSIP / ISIN: 06419UCV5 / US06419UCV52.

Bank of Nova Scotia's Three-Index Linked Note: Structure and Key Terms

According to the filing, The Bank of Nova Scotia is offering Market Linked Securities under its Senior Note Program, Series A, with an issue date expected on November 18, 2026, and a stated maturity date of August 16, 2030. The securities are priced at $1,000 per security and are denominated in multiples of $1,000. The calculation agent is Scotia Capital Inc., an affiliate of the Bank, and the agents are Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC. The filing states that Wells Fargo Securities will receive a discount of up to 2.325%, dealers including Wells Fargo Advisors, LLC will receive a selling concession of up to 1.75%, and Wells Fargo Advisors may receive a distribution expense fee of 0.075%.

The filing discloses that contingent coupon payments are made quarterly, calculated as ($1,000 multiplied by the contingent coupon rate) divided by 4, but only if the closing level of the lowest performing index on the related calculation day is greater than or equal to its coupon threshold level of 60.00% of that index's starting level. Calculation days occur quarterly on the 13th day of each February, May, August, and November, commencing February 2027 and ending August 2030. The filing notes that investors will not participate in any appreciation of any index but will bear full downside exposure to the lowest performing index if its ending level falls below the 60.00% downside threshold.

The filing identifies multiple risk considerations, including that the securities do not provide fixed interest payments, that any coupon payments may not be received on one or more payment dates or throughout the entire term, and that the securities are subject to the credit risk of the Bank. The filing also states that the Bank's estimated value of the securities is lower than the original offering price and "does not represent future values of the securities." The filing specifies that the securities are "NOT A BANK DEPOSIT AND 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 principal-at-risk, callable securities linked to the worst-performing of three equity indices, maturing August 16, 2030, with a contingent coupon rate of at least 8.25% per annum and both coupon and downside thresholds set at 60.00% of each index's starting level.