The Bank of Nova Scotia filed a free writing prospectus on November 3, 2026, disclosing preliminary terms for Autocallable Strategic Accelerated Redemption Securities linked to the S&P 500 Index, with a maturity of approximately six years and principal of $10.00 per unit.

Key Highlights

  • Issuer and structure: The Bank of Nova Scotia is offering senior unsecured notes with $10.00 principal amount per unit, with no FDIC or CDIC insurance.
  • Automatic call feature: Notes are callable if the S&P 500 Index closes at or above 100.00% of the Starting Value on any of six annual Observation Dates.
  • Call premiums: If called, payouts range from [$10.675 to $10.775] per unit on the first Observation Date up to [$14.050 to $14.650] per unit on the final Observation Date.
  • Downside risk: If not called, investors face 1-to-1 downside exposure to Index decreases, with up to 100.00% of principal at risk.
  • Initial estimated value: The initial estimated value of the notes as of the pricing date is expected to be between $9.126 and $9.426 per unit, less than the $10.00 public offering price.
  • Fees: The underwriting discount is $0.20 per unit (or $0.15 per unit for purchases of 300,000 units or more in a single transaction), plus a hedging-related charge of $0.05 per unit.
  • No exchange listing: The filing states there is limited secondary market liquidity and no exchange listing for the notes.

Bank of Nova Scotia's Preliminary Terms for S&P 500-Linked Autocallable Notes

According to the filing, The Bank of Nova Scotia is offering Autocallable Strategic Accelerated Redemption Securities linked to the S&P 500 Index, with an approximate six-year term ending November 2032 if not called earlier. The notes carry $10.00 principal per unit and no periodic interest payments. The calculation agent is identified as BofA Securities, Inc., and BofA Securities is listed as the underwriter.

The filing discloses that the notes will be automatically called if the closing level of the S&P 500 Index on any of six Observation Dates - occurring approximately one through six years after the pricing date - is at or above the Starting Value, defined as the closing level on the pricing date. The Call Level is set at 100.00% of the Starting Value. Call Amounts and the corresponding Call Premiums - ranging from [6.75% to 7.75%] on the first Observation Date to [40.50% to 46.50%] on the final Observation Date - will be determined on the pricing date, which remains to be set in November 2026.

The filing states that if the notes are not called, the Threshold Value equals the Starting Value, meaning any decline in the Index results in a proportional loss of principal, up to 100.00%. The filing further discloses that "all payments are subject to the credit risk of The Bank of Nova Scotia" and that the initial estimated value range of $9.126 to $9.426 per unit is below the $10.00 public offering price due to the internal funding rate, underwriting discount, and hedging-related charge. The filing was made pursuant to Rule 433 under Registration Statement No. 333-298611.

What Was Disclosed

The Bank of Nova Scotia filed preliminary terms for autocallable, S&P 500-linked senior unsecured notes due November 2032, with a $10.00 principal per unit, six annual call opportunities, full downside principal risk if not called, and an initial estimated value below the offering price.