The Bank of Nova Scotia is offering Trigger Autocallable GEARS linked to the Nikkei 225® Index with a trade date of March 13, 2026, and a maturity date of March 17, 2031. The Securities are senior unsecured debt securities that offer investors exposure to the performance of the Nikkei 225® Index.
Key features of the Securities:
- Automatic Call Feature: If the Nikkei 225® Index closes at or above the autocall barrier (equal to the initial level) on the observation date, BNS will automatically call the Securities. The call price will be equal to the principal amount plus an 18.00% call return, providing a total return of 18.00%.
- Enhanced Exposure to Positive Returns: If the Securities are not subject to an automatic call, investors will receive a cash payment at maturity equal to the principal amount plus a return equal to the underlying return multiplied by the upside gearing (ranging from 1.55 to 1.75).
- Contingent Repayment of Principal: If the Securities are not subject to an automatic call, and the underlying return is negative and the final level is below the downside threshold (75.00% of the initial level), investors will receive a cash payment at maturity less than the principal amount, resulting in a loss equal to the underlying return.
Key risks:
- Risk of loss at maturity: The Securities do not pay interest, and the principal amount is only repaid if certain conditions are met at maturity.
- Limited return on the Securities if automatically called: If the Securities are called, the potential gain is limited to the call return, regardless of any further appreciation of the underlying asset.
- Market risk: The return on the Securities is directly linked to the performance of the Nikkei 225® Index, which is subject to various risks such as stock price volatility, earnings, and economic conditions.
- Limited liquidity: The Securities will not be listed on any exchange, and there may be little or no secondary market, making it difficult to sell the Securities before maturity.
- Credit risk of BNS: The value and returns of the Securities are subject to the creditworthiness of The Bank of Nova Scotia.
- Tax risks: The tax treatment of the Securities is uncertain, particularly for U.S. holders, and could be subject to changes in legislation.
Key data:
- Initial Level: 100.00
- Call Return Rate: 18.00%
- Upside Gearing: 1.55 – 1.75
- Downside Threshold: 75.00% of the Initial Level
- Issue Price to Public: $10.00
Investor suitability considerations:
The Securities may be suitable for investors who understand and accept the risks involved, can tolerate potential losses, and believe in the upside potential of the Nikkei 225® Index. Investors should carefully consider the key risks and consult with their financial advisors before making an investment decision.
