The Bank of Nova Scotia filed a preliminary pricing supplement (Form 424B2) on August 4, 2026, for a proposed offering of Trigger Step Securities linked to the least performing of the S&P 500 Equal Weight Index and the EURO STOXX 50 Index, with a maturity date on or about August 9, 2029.

Key Highlights

  • Security type: Senior, unsecured debt securities issued by The Bank of Nova Scotia, linked to the least performing of two underlying indexes.
  • Step return range: The step return is expected to be between 40.00% and 44.00%, to be set on the trade date of August 5, 2026.
  • Downside threshold: Each underlying asset has a downside threshold set at 75.00% of its initial level; a breach triggers full downside market exposure.
  • Issue price and minimum investment: Securities are offered at $10.00 per Security, with a minimum investment of 100 Securities ($1,000), and integral multiples of $10 in excess thereof.
  • Initial estimated value: The initial estimated value of the Securities at the trade date is expected to be between $9.247 and $9.547 per principal amount, less than the $10.00 issue price.
  • No interest payments: According to the filing, the Securities do not pay interest.
  • No exchange listing: The filing states the Securities will not be listed or displayed on any securities exchange or any electronic communications network.

Structure, Payoff Scenarios, and Key Risks of the Bank of Nova Scotia Trigger Step Securities

According to the filing, the Securities are senior, unsecured debt obligations of The Bank of Nova Scotia (NYSE: BNS) with a final valuation date of August 6, 2029, and a maturity date on or about August 9, 2029. The settlement date is expected to be August 10, 2026. The amount payable at maturity depends on the performance of whichever of the two underlying indexes - the S&P 500 Equal Weight Index (Bloomberg ticker: SPW) and the EURO STOXX 50 Index (Bloomberg ticker: SX5E) - produces the lowest percentage return from its initial level to its final level.

The filing describes three distinct payoff outcomes. If the final level of each underlying asset is equal to or greater than its step barrier (set at 100.00% of its initial level), BNS will pay the principal amount plus a return equal to the greater of the step return or the least performing underlying return. If the final level of any underlying asset falls below its step barrier but each underlying asset remains at or above its downside threshold (75.00% of initial level), the filing states BNS will repay only the principal amount. If, however, the final level of any underlying asset falls below the 75.00% downside threshold, the filing discloses that investors will receive less than the principal amount, calculated as a percentage loss equal to the least performing underlying return, and "in extreme situations, you could lose your entire investment in the Securities."

The filing notes that Scotia Capital (USA) Inc., an affiliate of BNS, will purchase the Securities at the principal amount and sell them to UBS Financial Services Inc. at the principal amount, with UBS proposing to offer them to certain fee-based advisory accounts. The underwriting discount per Security is listed as $0.00 and proceeds to The Bank of Nova Scotia are $10.00 per Security. The filing carries CUSIP 06419X851 and ISIN US06419X8517.

What Was Disclosed

The Bank of Nova Scotia filed a preliminary pricing supplement for Trigger Step Securities linked to two equity indexes, due August 9, 2029. Key terms including the step return, initial levels, and total offering size remain subject to completion as of the filing date.