The Bank of Nova Scotia has issued $16.66 million in Airbag Autocallable Yield Notes linked to the common stock of QUALCOMM Incorporated, maturing on January 28, 2027. The Notes offer a fixed coupon rate of 6.00% per annum, paid quarterly, with a call threshold level set at 100.00% of the initial level and a conversion level at 85.00% of the initial level.
Investors will receive a cash payment equal to the principal amount plus the final coupon payment if the final level of the underlying asset is equal to or greater than the conversion level at maturity. However, if the final level is below the conversion level and the Notes are not called, investors will receive a number of QUALCOMM shares equal to the principal amount divided by the conversion level, potentially resulting in a loss of the entire investment.
The Notes are subject to automatic call if the underlying asset's level reaches or exceeds the call threshold level on any observation date before the final valuation date, leading to a cash payment of the principal amount plus the final coupon payment. The Notes are unlisted and have limited liquidity, with potential for significant price fluctuations before maturity.
Investors should be aware of the risks involved, including the potential for loss of principal, the uncertainty of tax treatment, and the conflicts of interest related to the issuer and its affiliates. The Notes are considered suitable for investors who understand and accept the risks and are willing to potentially receive QUALCOMM shares at maturity.
