The Bank of Nova Scotia filed a free writing prospectus on October 26, 2026, disclosing terms for principal-at-risk, auto-callable securities linked to the common stock of Oracle Corporation, due November 1, 2029, under Registration No. 333-298611.

Key Highlights

  • Face amount: $1,000 per security, with denominations in any integral multiple of $1,000.
  • Contingent coupon rate: At least 18.00% per annum, to be determined on the pricing date of October 30, 2026.
  • Coupon and downside threshold price: Each set at 60.00% of the starting price.
  • Estimated value at pricing: Between $929.95 (92.995%) and $959.95 (95.995%) per $1,000 face amount, according to the filing.
  • Automatic call feature: Securities may be called on any monthly calculation day from January 2027 through September 2029, inclusive, if the stock closing price is at or above the starting price.
  • Principal risk: The filing states that if the securities are not called and the ending price is below the downside threshold price, investors "will lose more than 40.00%, and possibly all, of the face amount" at stated maturity.
  • CUSIP / ISIN: 06419TP93 / US06419TP939.

Structure and Terms of the Oracle-Linked Auto-Callable Securities

According to the filing, The Bank of Nova Scotia (NYSE:BNS) is offering equity-linked securities under its Senior Note Program, Series A, with Oracle Corporation common stock (Bloomberg Ticker: ORCL) as the underlying stock. The pricing date is October 30, 2026, and the issue date is November 4, 2026. The stated maturity date is November 1, 2029, each subject to change. Calculation days occur monthly on the 28th of each month, commencing November 2026 and ending October 2029, with contingent coupon payments made three business days after each calculation day.

The filing describes a memory feature for unpaid coupons: if the stock closing price falls below the coupon threshold price on one or more calculation days, and then meets or exceeds it on a subsequent calculation day, the securities will pay the current coupon plus all previously unpaid contingent coupon payments, without interest on the unpaid amounts. If the securities are not called and reach maturity with the ending price at or above the downside threshold price, investors receive $1,000 per security. If the ending price is below the downside threshold, the maturity payment equals $1,000 multiplied by the performance factor, which is the ending price divided by the starting price.

The filing discloses that Scotia Capital Inc., an affiliate of the Bank, will serve as calculation agent. Agents are Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC. 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 also notes that the Bank's estimated value of the securities will be lower than the original offering price, and that "the inclusion of dealer spread and projected profit from hedging in the original offering price is likely to adversely affect secondary market prices."

What Was Disclosed

The Bank of Nova Scotia filed a term sheet for auto-callable, principal-at-risk notes linked to Oracle Corporation common stock, maturing November 1, 2029, with a contingent coupon rate of at least 18.00% per annum, a 60.00% downside threshold, and an estimated value of $929.95 to $959.95 per $1,000 face amount.