MARKET-LINKED STEP UP NOTES
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Market-Linked Step Up Notes Linked to an Asian Equity Index and Underlying Fund Basket
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This graph reflects the hypothetical return on the notes, based on the mid-point of the range(s) set forth in the table to the left. This graph has been prepared for purposes of illustration only.
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Issuer
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The Bank of Nova Scotia (“BNS”)
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Principal Amount
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$10.00 per unit
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Term
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Approximately 14 months
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Market Measure
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An Asian equity index and Underlying Fund basket comprised of the Hang Seng China Enterprises Index (Bloomberg symbol: “HSCEI”), the Taiwan Stock Exchange Capitalization Weighted Stock Index (Bloomberg symbol: “TWSE”), the KOSPI 200 Index (Bloomberg symbol: “KOSPI2”), the iShares® MSCI India ETF (Bloomberg symbol: “INDA”) and the WisdomTree India Earnings Fund (Bloomberg symbol: “EPI”)
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Payout Profile at Maturity
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● If the Market Measure is flat or increases up to the Step Up Value, a return equal to the Step Up Payment
● If the Market Measure increases above the Step Up Value, a return equal to the percentage increase in the Market Measure
● 1-to-1 downside exposure to decreases in the Market Measure, with up to 100.00% of your principal at risk
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Step Up Value
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[112.00% to 116.00%] of the Starting Value, to be determined on the pricing date
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Step Up Payment
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[$1.20 to $1.60] per unit, a [12.00% to 16.00%] return over the principal amount, to be determined on the pricing date
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Threshold Value
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100.00% of the Starting Value
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Investment Considerations
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This investment is designed for investors who anticipate that the Market Measure will not decrease over the term of the notes and are willing to take full downside risk and forgo interim interest payments.
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Preliminary Offering Documents
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Exchange Listing
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No
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Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.
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Payments on the notes, including repayment of principal, are subject to the credit risk of BNS, and actual or perceived changes in the creditworthiness of BNS are expected to affect the value of the notes. If BNS becomes insolvent or is unable to pay its obligations, you may lose your entire investment.
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Changes in the value of one of the Basket Components may be offset by changes in the values of the other Basket Components.
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The initial estimated value of the notes on the pricing date will be less than their public offering price.
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If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date.
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You will have no rights that a holder of an Underlying Fund or the securities represented by Basket Components would have, you will have no rights to receive any of the Underlying Funds or the securities represented by Basket Components, and you will not be entitled to dividends or other distributions by the issuers of these securities.
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Your return on the notes may be affected by factors affecting the international securities markets, specifically changes in the countries represented by the Basket Components. In addition, although the value of the Underlying Funds will generally reflect the U.S. dollar value of the securities included in such Underlying Funds, you will not obtain the benefit of any increase in the value of the currencies in which securities in the Indices trade against the U.S. dollar, which you would have received if you had owned the securities in the Indices during the term of your notes, although the value of the Basket may be adversely affected by general exchange rate movements in the market.
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The stocks included in each Basket Component that is an Index are concentrated in a limited number of companies.
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