The Bank of Nova Scotia $3,288,000 Trigger Autocallable Notes are linked to the EURO STOXX 50® Index and have a maturity date of May 13, 2031. The Notes feature an automatic call if the index closes at or above the call threshold level (initial level of 5,911.53) on any quarterly observation date, callable after 12 months. The call price increases with time, starting at 10.20% per annum. If not called, the Notes pay principal if the final level is at or above the downside threshold (4,433.65), or a reduced amount based on the underlying return if below it.
Key risks include the potential for loss at maturity, no interest payments, limited liquidity, and dependence on BNS' creditworthiness. The Notes are not listed, and there may be limited secondary market activity. The estimated initial value of $9.63 per Note is lower than the issue price of $10, reflecting issuance and hedging costs.
The tax treatment is uncertain, particularly for U.S. holders, with potential for capital gains/losses or ordinary income treatment. Non-U.S. holders may face withholding taxes depending on their transactions and status.
Investors should be comfortable with the risks and potential for significant loss, understanding that the Notes offer limited upside potential and are subject to market and credit risks.
