The Bank of Nova Scotia filed a free writing prospectus on October 27, 2026, disclosing the term sheet for Market Linked Securities linked to the common stock of Palo Alto Networks, Inc., with a stated maturity date of November 2, 2029.

Key Highlights

  • Issuer and underlying: The Bank of Nova Scotia is the issuer; the market measure is the common stock of Palo Alto Networks, Inc. (Bloomberg Ticker: PANW).
  • Face amount: $1,000 per security, with denominations in any integral multiple of $1,000.
  • Contingent coupon rate: At least 14.80% per annum, to be determined on the pricing date of October 30, 2026.
  • Key thresholds: The call threshold price is 90.00% of the starting price; both the coupon threshold price and the downside threshold price are 50.00% of the starting price.
  • Estimated value: If the securities priced on October 27, 2026, the Bank's estimated value would be between $928.72 (92.872%) and $958.72 (95.872%) per $1,000 face amount.
  • Principal risk: According to the filing, if the ending price is less than the downside threshold price at maturity, investors "will lose more than 50.00%, and possibly all, of the face amount" of the securities.
  • CUSIP / ISIN: 06419TX45 / US06419TX453.

Structure and Terms of the Bank of Nova Scotia PANW-Linked Securities

According to the filing, the securities are auto-callable, contingent coupon notes issued under the Bank of Nova Scotia's Senior Note Program, Series A, registered under Registration No. 333-298611. The pricing date is expected to be October 30, 2026, with an issue date of November 4, 2026, and a stated maturity date of November 2, 2029. Calculation days occur quarterly on the 30th day of each January, April, July, and October, commencing in January 2027 and ending in October 2029.

The filing discloses that a contingent coupon payment is made only if the stock closing price of Palo Alto Networks on the applicable calculation day is greater than or equal to the coupon threshold price, which is 50.00% of the starting price. Each quarterly contingent coupon payment is calculated as ($1,000 multiplied by the contingent coupon rate) divided by 4. The securities are subject to automatic call if the stock closing price on any calculation day from January 2027 through July 2029 is greater than or equal to the call threshold price of 90.00% of the starting price, at which point holders receive the face amount plus a final contingent coupon payment.

If the securities are not called and the ending price at the final calculation day is below the downside threshold price of 50.00% of the starting price, the maturity payment is $1,000 multiplied by the performance factor, which is the ending price divided by the starting price. The filing states that investors "will not participate in any appreciation of the Underlying Stock." Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC are listed as agents. Wells Fargo Securities, LLC is disclosed to receive a discount of up to 2.325%, and Wells Fargo Advisors, LLC may receive a selling concession of up to 1.75% plus a distribution expense fee of 0.075%.

What Was Disclosed

The Bank of Nova Scotia filed a term sheet free writing prospectus for principal-at-risk, auto-callable securities linked to Palo Alto Networks common stock, maturing November 2, 2029, with a contingent coupon rate of at least 14.80% per annum and an estimated value below face amount at issuance.