The Bank of Nova Scotia filed an Issuer Free Writing Prospectus on November 12, 2026, disclosing terms of Contingent Income Auto-Callable Securities linked to Eli Lilly and Company common stock, with a maturity date on or about November 26, 2029.

Key Highlights

  • Underlying asset: Common stock of Eli Lilly and Company (Bloomberg Ticker: "LLY UN"), with the initial share price set on the pricing date of November 20, 2026.
  • Contingent quarterly coupon: $28.40 per security (equivalent to 11.36% per annum) if the closing price on a determination date is at or above the downside threshold price.
  • Downside threshold price: 60.00% of the initial share price; if the final share price falls below this level, payment at maturity will be less than 60.00% of the $1,000.00 stated principal amount and could be as low as zero.
  • Call threshold price: 100.00% of the initial share price; securities are automatically redeemed early if the closing price meets or exceeds this level on any non-final determination date.
  • Estimated value at pricing: Expected to be between $938.10 and $968.10 per security, below the $1,000.00 issue price.
  • Commission: $22.50 per stated principal amount; securities will not be listed on any exchange or electronic communications network.
  • CUSIP / ISIN: 06419UEM3 / US06419UEM36; issued under the Senior Note Program, Series A, with original issue date of November 25, 2026.

Terms and Risk Profile of BNS Eli Lilly-Linked Securities

According to the filing, The Bank of Nova Scotia is offering Contingent Income Auto-Callable Securities with a stated principal amount of $1,000.00 per security and a minimum investment of $1,000 (1 security). The securities are senior unsecured debt obligations of BNS, and the filing states that "all payments on the securities are subject to the credit risk of BNS." The pricing date is November 20, 2026, with an original issue date of November 25, 2026, and a final determination date of November 20, 2029.

The filing discloses that a contingent quarterly coupon of $28.40 per security is payable only when the closing price of Eli Lilly common stock on a given determination date is greater than or equal to the downside threshold price, set at 60.00% of the initial share price. If that threshold is not met, no coupon is paid for that period. Early automatic redemption occurs if the closing price on any non-final determination date equals or exceeds the call threshold price of 100.00% of the initial share price, in which case investors receive the stated principal amount plus the applicable contingent coupon, with no further payments thereafter. The filing notes that "the securities are subject to reinvestment risk in the event of an early redemption."

At maturity, if the final share price is below the downside threshold, investors receive only the stated principal amount multiplied by the share performance factor (final share price divided by initial share price), which the filing states "will be less than 60.00% of the stated principal amount and could be as low as zero." BNS's initial estimated value of the securities is expected to be between $938.10 and $968.10 per security. The filing also notes there is no affiliation between BNS and Eli Lilly, and that investors will not participate in any appreciation of the underlying stock.

What Was Disclosed

The Bank of Nova Scotia filed a Free Writing Prospectus disclosing the preliminary terms of principal-at-risk, auto-callable structured notes linked to Eli Lilly common stock, including coupon conditions, early redemption triggers, downside thresholds, estimated value range, and associated risk factors.