ACCELERATED RETURN NOTES® (ARNs®)
|
ARNs® Linked to the EURO STOXX 50® Index
|
Issuer
|
The Bank of Nova Scotia (“BNS”)
|
||
Principal Amount
|
$10.00 per unit
|
||
Term
|
Approximately 14 months
|
||
Market Measure
|
The EURO STOXX 50® Index (Bloomberg symbol: “SX5E”)
|
||
Payout Profile at
Maturity
|
• 3-to-1 leveraged upside exposure to increases in the Market Measure, subject to the
Capped Value
• 1-to-1 downside exposure to decreases in the Market Measure, with up to 100.00% of your
principal at risk
|
||
Participation Rate
|
300.00%
|
||
Capped Value
|
[$11.70 to $12.10] per unit, a [17.00% to 21.00%] return over the principal amount, to be determined on the pricing date
|
||
Investment
Considerations
|
This investment is designed for investors who anticipate that the Market Measure will increase moderately over the term of the notes, and are willing to accept a capped return, take full
downside risk and forgo interim interest payments.
|
||
Preliminary Offering
Documents
|
|||
Exchange Listing
|
No
|
•
|
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.
|
•
|
Payments on the notes 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.
|
•
|
Your investment return is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the stocks included in the
Market Measure.
|
•
|
The initial estimated value of the notes on the pricing date will be less than their public offering price.
|
•
|
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.
|
•
|
You will have no rights of a holder of the securities represented by the Market Measure, and you will not be entitled to receive securities or dividends or other
distributions by the issuers of those securities.
|
•
|
Your return on the notes may be affected by factors affecting the international securities markets, specifically changes within the Eurozone. The Eurozone is and has
been undergoing severe financial stress, and the political, legal and regulatory ramifications are impossible to predict. Changes within the Eurozone could adversely affect the performance of the Market Measure and, consequently,
the value of the notes. In addition, you will not obtain the benefit of any increase in the value of the euro against the U.S. dollar, which you would have received if you had owned the securities in the Market Measure during the
term of your notes, although the level of the Market Measure may be adversely affected by general exchange rate movements in the market.
|
Hypothetical Percentage Change from the
Starting Value to the Ending Value
|
Hypothetical Redemption
Amount per Unit
|
Hypothetical Total Rate of
Return on the Notes
|
-100.00%
|
$0.00
|
-100.00%
|
-75.00%
|
$2.50
|
-75.00%
|
-50.00%
|
$5.00
|
-50.00%
|
-40.00%
|
$6.00
|
-40.00%
|
-30.00%
|
$7.00
|
-30.00%
|
-20.00%
|
$8.00
|
-20.00%
|
-10.00%
|
$9.00
|
-10.00%
|
-5.00%
|
$9.50
|
-5.00%
|
0.00%
|
$10.00
|
0.00%
|
2.00%
|
$10.60
|
6.00%
|
4.00%
|
$11.20
|
12.00%
|
6.00%
|
$11.80
|
18.00%
|
6.34%
|
$11.90(1)
|
19.00%
|
10.00%
|
$11.90
|
19.00%
|
20.00%
|
$11.90
|
19.00%
|
30.00%
|
$11.90
|
19.00%
|
40.00%
|
$11.90
|
19.00%
|
50.00%
|
$11.90
|
19.00%
|
(1)
|
The Redemption Amount per unit cannot exceed the hypothetical Capped Value.
|
|