The Bank of Nova Scotia filed a free writing prospectus on October 27, 2026, disclosing the term sheet for market linked, auto-callable securities linked to the lowest performing of Amazon.com, Eli Lilly, and Meta Platforms common stock, due November 2, 2029.

Key Highlights

  • Pricing and issue dates: The securities are expected to price on October 30, 2026, with an issue date of November 4, 2026, subject to change.
  • Face amount: $1,000 per security, in denominations of $1,000 and any integral multiple of $1,000.
  • Auto-call feature: If the lowest performing underlying stock closes at or above 85% of its starting price on November 4, 2027, the securities are automatically called at face amount plus a call premium of at least 42.50% (at least $425.00 per $1,000).
  • Upside participation rate: 250.00% of the lowest performing underlying stock's return if not called and the ending price exceeds the starting price.
  • Threshold price: 60% of each underlying stock's starting price; if the ending price falls below this level, investors bear full downside exposure and "will lose more than 40%, and possibly all, of the face amount."
  • Estimated value: If the securities priced on the filing date, the estimated value would be between $880.00 (88.00%) and $894.84 (89.484%) per security, according to the filing.
  • Agent discounts: Wells Fargo Securities, LLC will receive a discount of up to 2.575%; dealers including Wells Fargo Advisors, LLC may receive a selling concession of up to 2.00% and a distribution expense fee of 0.075%.

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

According to the filing, the securities are issued under The Bank of Nova Scotia's Senior Note Program, Series A, and are registered under Registration No. 333-298611. The three underlying stocks are Amazon.com, Inc. (Bloomberg Ticker: AMZN), Eli Lilly and Company (Bloomberg Ticker: LLY), and Meta Platforms, Inc. (Bloomberg Ticker: META). The calculation agent is Scotia Capital Inc., an affiliate of the Bank. The CUSIP is 06419TP28 and the ISIN is US06419TP285.

The filing explains that payouts at maturity, if the securities are not automatically called, depend entirely on the underlying stock with the lowest return. If that stock's ending price on the final calculation day (October 30, 2029) exceeds its starting price, holders receive $1,000 plus $1,000 multiplied by the underlying stock return multiplied by the 250.00% upside participation rate. If the ending price is at or below the starting price but at or above 60% of the starting price, holders receive $1,000. If the ending price falls below 60% of the starting price, holders receive $1,000 plus $1,000 multiplied by the underlying stock return, meaning loss of principal proportional to the decline.

The filing notes that "no periodic interest will be paid on the securities" and that the securities "are subject to the full risks of each underlying stock." It also states the securities are "not a bank deposit and not insured or guaranteed by the FDIC or any other governmental agency." The filing directs investors to the preliminary pricing supplement, product supplement, prospectus supplement, and prospectus for full risk disclosures, including risks related to liquidity, secondary market pricing, hedging conflicts of interest, and the Bank's credit risk.

What Was Disclosed

The Bank of Nova Scotia filed a term sheet via free writing prospectus for auto-callable, principal-at-risk securities linked to the lowest performing of three stocks, with a call premium of at least 42.50%, a 250.00% upside participation rate, and a maturity of November 2, 2029.