BNS EURO STOXX Banks Autocallable tes, Series 2 Principal at Risk tes Due vember 27, 2020 October 22, 2015 A Bank of va Scotia short form base shelf prospectus dated December 19, 2014, a prospectus supplement thereto dated January 5, 2015 and pricing supplement. 208 there to dated October 22, 2015 (together, the Prospectus ) have been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the Prospectus, and any amendments thereto that have been filed is required to be delivered with this document. The Prospectus, and any amendments thereto, contains important information relating to the securities described in this document. This document does not provide full disclosure of all material facts relating to the securities offered and investors should read the Prospectus, and any amendments thereto, for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision. A copy of the short form base shelf prospectus, the prospectus supplement and the pricing supplement can also be obtained at www.sedar.com. Unless the context otherwise requires, terms not otherwise defined herein will have the meaning ascribed thereto in the Prospectus. GRAPHICAL DESCRIPTION OF PAYOFF INVESTMENT HIGHLIGHTS Yes Yes Yes Yes Final Is the Final Index Level greater than the Barrier Level? Investors receive initial investment reduced by the Index Return (min. principal repayment of $1.00 per te) Yes Yes Autocall - $100.00 + $9.00 per te + 5% of exceeds 9.00% Autocall - $100.00 + $18.00 per te + 5% of exceeds 18.00% Autocall - $100.00 + $24.00 per te + 5% of exceeds 24.00% Autocall - $100.00 + $30.00 per te + 5% of exceeds 30.00% Autocall - $100.00 + $35.00 per te + 5% of exceeds 35.00% $100.00 per te Issuer: The Bank of va Scotia Reference Index*: EURO STOXX Banks Index Potential Return: The Fixed Return for the 2016 Autocall, Valuation,, 2019 Autocall and the is 9.00%, 18.00%, 24.00%, 30.00% and 35.00%, respectively. The Fixed Return is equivalent to an annualized return of 9.00%, 8.63%, 7.43%, 6.78%, and 6.19%, respectively. Investors may also receive an additional return of 5% of the amount, if any, by which the Index Return exceeds the Fixed Return on the applicable. s: vember 27, 2016, vember 27, 2017, vember 27, 2018, vember 27, 2019 and vember 27, 2020. Barrier Protection: The tes provide contingent downside protection at maturity if the Final Index Level is above the Barrier Level (75% of the Initial Index on the. If the Final Index Level is below or equal to the Barrier Level on the Final, an investor in the tes will be fully exposed to any negative price performance of the Index, meaning that all or substantially all such investor s investment may be lost (subject to a minimum principal repayment of $1.00 per te). * The Index level reflects only the price appreciation or depreciation of the securities of the companies comprising the Index and does not reflect the payment of dividends on such securities. The annual dividend yield on the Index as of October 15, 2015, was 3.76%, representing an aggregate dividend yield of approximately 20.27% annually compounded over the 5-year term of the tes on the assumption that the dividends paid on the securities comprising the Index remain constant. FundSERV Available Until Issue Maturity Min. Investment (if not called) SSP1016 vember 20, 2015 vember 27, 2015 vember 27, 2020 CAD $5,000 CONTACT INFORMATION www.investorsolutions.gbm.scotiabank.com Western Canada Ontario & Eastern Canada Quebec National Todd Thal: 604-606-3830 Chris Janson: 416-866-5442 Todd Chalmers: 416-945-4803 The information above must be read in conjunction with the Prospectus. Evelyn Kamiliotis: 416-945-4408 Stephanie Kirin: 416-862-3928 Toll Free: 1-866-416-7891
KEY TERMS Issuer: Principal Issue : CUSIP: FundSERV Code: Maturity : Autocall: Minimum Investment: Index: The Bank of va Scotia (the Bank ) $100.00 per te. The tes will be issued on or about vember 27, 2015, or such other date as may be agreed between the Bank and Scotia Capital Inc. and Laurentian Bank Securities Inc. 064151FA6 SSP1016 vember 27, 2020 (approximately a 5 year term), subject to the tes being automatically called by the Bank. The tes will be automatically called (i.e., redeemed) by the Bank and a Variable Return will be paid to investors if the Closing Index Level on any is greater than or equal to the Initial Index Level. If the Closing Index Level on any Valuation is not greater than or equal to the Initial Index Level, the tes will not be automatically called by the Bank and the Variable Return will not be paid to investors. $5,000 (50 tes) Whether there is a return on the tes through the Variable Return and whether the Principal is returned at maturity is based on the price performance of the EURO STOXX Banks Index. Initial : vember 27, 2015 s: The Closing Index Level will be observed on the second Business Day prior to vember 27, 2016, vember 27, 2017, vember 27, 2018, vember 27, 2019 and on the second Business Day prior to the Maturity, provided, in each case, that if such day is not an Exchange Business Day then the Autocall or the Final, as the case may be, will be the immediately preceding Exchange Business Day, subject to the occurrence of a Market Disruption Event. The amount payable on the tes if they are automatically called by the Bank or at maturity will be calculated as follows: If the Closing Index Level on an Autocall or the Final is greater than or equal to the Initial Index Level, the will equal: Principal + Variable Return If the Index Return on the Final is less than 0.00% and the Final Index Level is greater than the Barrier Level on the Final, the will equal: Principal If the Index Return on the Final is less than 0.00% and the Final Index Level is equal to or less than the Barrier Level on the Final, the will equal: Principal + (Principal x Index Return) The may be less than the Principal invested by an investor. The will be subject to a minimum principal repayment of $1.00 per te. Final Index Level Initial Index Level Initial Index Level Initial Index Level: Final Index Level: Barrier Level: Variable Return: Listing and Secondary Market: The closing level or value of the Index on a given day as calculated and announced by the Index Sponsor on an Exchange Business Day. The Closing Index Level on the Initial, provided that if the Initial is not an Exchange Business Day, the Initial Index Level will be determined as of the first succeeding day that is an Exchange Business Day. The Closing Index Level on an Autocall or the Final. 75% of the Initial Index Level. The Variable Return, if any, applicable to each respective will be calculated using the following formula: Principal x (Fixed Return + Additional Return) Final Fixed Return 9.00% 18.00% 24.00% 30.00% 35.00% Additional Return (if Index Return > Fixed Return) (Index Return less 9.00%) x 5% (Index Return less 18.00%) x 5% (Index Return less 24.00%) x 5% (Index Return less 30.00%) x 5% (Index Return less 35.00%) x 5% Investors should note that the increase in the Fixed Return varies between years during the term of the tes. The Fixed Return is equivalent to an annualized return of 9.00%, 8.63%, 7.43%, 6.78% and 6.19%, respectively. The tes will not be listed on any exchange or marketplace. Scotia Capital Inc. will use reasonable efforts under normal market conditions to provide a daily secondary market for the sale of the tes but reserves the right to elect not to do so, in its sole and absolute discretion, without prior notice to investors. Early Trading Charge: If Sold Within Early Trading Charge (% of Principal ) 0-90 days 91-180 days Thereafter Eligibility for Investment: RRSPs, RRIFs, RESPs, RDSPs, DPSPs and TFSAs Selling Concession: 4.00% 2.00% Nil A selling concession fee of $3.00 per te sold (or 3.00% of the Principal ) is payable to the Investment Dealers for further payment to representatives employed by the Investment Dealers whose clients purchase the tes. In addition, a fee of up to $0.15 per te sold (or up to 0.15% of the Principal ) will be payable directly by the Bank to Laurentian Bank Securities Inc. for acting as independent agent.
HYPOTHETICAL EXAMPLES Values for hypothetical calculations: Initial Index Level: 157.16 Barrier Level: 75% of the Initial Index Level = 75% x 157.16 = 117.87 Example One Scenario: The tes are not automatically called as the Closing Index Level on each is less than the Initial Index Level, and the Index Return on the Final is less than 0.00% and the Final Index Level is equal to or less than the Barrier Level on the Final. 79.10 (Final Index -5.05% (actual) -14.01% (actual) -15.00% (actual) -17.00% (actual) -49.67% (actual) $50.33 per te In this example, an investor would receive the of $50.33 per te, which is equivalent to a compound annual return of approximately -12.83% on the tes. Example Two Scenario: The tes are not automatically called as the Closing Index Level on each is less than the Initial Index Level, and the Index Return on the Final is less than 0.00% but the Final Index Level is greater than the Barrier Level on the Final. 140.34 (Final Index -5.05% (actual) -14.01% (actual) -15.00% (actual) -17.00% (actual) -10.70% (actual) $100.00 per te In this example, an investor would receive the of $100.00 per te, which is equivalent to a compound annual return of 0.00% on the tes. Example Three Scenario: The tes are not automatically called on an Autocall as the Closing Index Level on each Autocall Valuation is less than the Initial Index Level. The Closing Index Level on the Final is greater than or equal to the Initial Index Level but no Additional Return is paid because the Index Return is less than or equal to the Fixed Return. 160.43 (Final Index -5.05% (actual) -14.01% (actual) -15.00% (actual) -17.00% (actual) 2.08% (actual) $135.00 per te In this example, an investor would receive the of $135.00 per te, which is equivalent to a compound annual return of approximately 6.19% on the tes. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Index or the return that an investor might realize on the tes. The Index Return will be calculated based on the price return of the Index, which will not reflect the value of any dividends, distributions or other income or amounts accruing on the constituent securities of the Index. All dollar amounts are rounded to the nearest whole cent.
HYPOTHETICAL EXAMPLES Example Four Scenario: The tes are not automatically called in 2016 or 2017. The Closing Index Level on the is greater than or equal to the Initial Index Level and the tes are automatically called and an Additional Return is paid because the Index Return is greater than the Fixed Return. 149.22 133.59 203.11 (Autocall) -5.05% (actual) -15.00% (actual) 29.24% (actual) $124.26 per te In this example, an investor would receive the of $124.26 per te, which is equivalent to a compound annual return of approximately 7.51% on the tes. Example Five Scenario: The Closing Index Level on the is greater than or equal to the Initial Index Level and the tes are automatically called but no Additional Return is paid because the Index Return is less than or equal to the Fixed Return. 166.59 (Autocall) 6.00% (actual) $109.00 per te In this example, an investor would receive the of $109.00 per te, which is equivalent to a compound annual return of 9.00% on the tes. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Index or the return that an investor might realize on the tes. The Index Return will be calculated based on the price return of the Index, which will not reflect the value of any dividends, distributions or other income or amounts accruing on the constituent securities of the Index. All dollar amounts are rounded to the nearest whole cent.
DISCLAIMER securities regulatory authority has in any way passed upon the merits of securities referred to herein and any representation to the contrary is an offence. The tes are not principal protected (subject to a minimum principal repayment of CAD$1.00 per te) and an investor may receive less than the original principal amount at maturity. A person should reach a decision to invest in the tes only after carefully considering, with his or her investment, legal, accounting, tax and other advisors, the suitability of the tes in light of his or her investment objectives and the information set out in the Prospectus. The Bank, the Calculation Agent, Scotia Capital Inc. and Laurentian Bank Securities Inc. make no recommendation as to the suitability of the tes for investment by any particular person. The tes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the 1933 Act ), or any State securities laws and, subject to certain exceptions, may not be offered for sale, sold or delivered, directly or indirectly, in the United States, its territories or possessions or to or for the account or benefit of U.S. persons within the meaning of Regulation S under the 1933 Act. In addition, the tes may not be offered or sold to residents of any jurisdiction or country in Europe. Scotiabank, Scotiabank Global Banking and Markets, Scotia Capital Inc. and the flying S logo are registered trademarks of The Bank of va Scotia. s paid to holders of tes will depend on the performance of underlying interests. Unless otherwise specified in the Prospectus, the Bank does not guarantee that any of the principal amount of tes will be paid at maturity or that any return will be paid on tes (subject to a minimum principal repayment of CAD$1.00 per te). Purchasers could lose all or substantially all of their investment in tes. tes are not appropriate investments for persons who do not understand the risks associated with structured products or derivatives. A purchaser of tes will be exposed to fluctuations and changes in the levels of the Index to which the tes are linked. Index levels may be volatile and an investment linked to index levels may also be volatile. Purchasers should read carefully the Risk Factors sections in the Prospectus. The tes will not constitute deposits under the Canada Deposit Insurance Corporation Act. The tes have not been rated and will not be insured by the Canada Deposit Insurance Corporation or any other entity and therefore the payments to investors will be dependent upon the financial health and creditworthiness of the Bank. Scotia Capital is a wholly owned subsidiary of the Bank. Consequently, the Bank is a related and connected issuer of Scotia Capital within the meaning of applicable securities legislation. See Plan of Distribution in the Prospectus. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness. INDEX SPONSOR STOXX Limited ( STOXX ) and its licensors (the Licensors ) have no relationship to the Bank, other than the licensing of the Index and the related trademarks for use in connection with the tes. STOXX and the Licensors do not: sponsor, endorse, sell or promote the tes; recommend that any person invest in the tes or any other securities; have any responsibility or liability for or make any decisions about the timing, amount or pricing of the tes; have any responsibility or liability for the administration, management or marketing of the tes; consider the needs of the tes or the owners of the tes in determining, composing or calculating the Index or have any obligation to do so. STOXX and the Licensors will not have any liability in connection with the tes. Specifically, STOXX and the Licensors do not make any warranty, express or implied and disclaim any and all warranty about: the results to be obtained by the tes, the owner of the tes or any other person in connection with the use of the Index and the data included in the Index; the accuracy or completeness of the Index and its data; the merchantability and the fitness for a particular purpose or use of the Index and its data; STOXX and the Licensors will have no liability for any errors, omissions or interruptions in the Index or its data; under no circumstances will STOXX or the Licensors be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if STOXX or its Licensors knows that they might occur. The licensing agreement between the Bank and STOXX is solely for their benefit and not for the benefit of the owners of the tes or any other third parties.