Product Description
The Deposit Notes provide a return at the 8.5-year term maturity that is linked to the price performance, converted into Canadian dollars, of a notional reference portfolio composed of the common shares of 20 international companies.
The Deposit Notes are callable for redemption 4 years and 3 months after the Issuance Date at $140.06 per Deposit Note representing an annual compounded rate of return of approximately 8.25%.
If the Bank does not exercise its right to call the Deposit Notes, the Variable Return at maturity is unlimited.
The Reference Share Return is a price return, and will not take into account dividends paid in respect of each of the Reference Shares (which represented an annual return of approximately 3.68% as of June 6, 2014.
Note
On May 24, 2022, BHP Group Limited (ASE: BHP) (“BHP”) completed the spin-off of Woodside Energy Group Ltd (ASE: WDS) (“Woodside”) by the special distribution of one newly issued share of Woodside for every 5.5340 shares of BHP held. The spin-off occurred following the announcement of the merger of BHP with Woodside. This event triggered a Potential Adjustment Event as per the terms and conditions of the Deposit Notes in respect of the common shares of BHP, a Reference Share in the Reference Portfolio of the Deposit Notes. As such, the Initial Value of the common shares of BHP was adjusted as of the closing of the markets on May 24, 2022.
On October 10, 2016, Anheuser-Busch InBev SA/NV (“ABI”) announced the completion of the combination with SABMiller plc (“SAB”) triggering a Substitution Event in connection with the Reference Portfolio of the Deposit Notes as per the terms of the Information Statement. As a result of such event, we hereby advise the Holders of the Deposit Notes that, as of October 5, 2016, the common shares of SAB have been replaced with the common shares of ABI as a Reference Share in the Reference Portfolio of the Deposit Notes in accordance with the terms and conditions of the Information Statement. All calculations in respect of the Reference Portfolio Return that were based on the price of the common shares of SAB will be, from October 5, 2016 at the close of trading until maturity, based on the price of the common shares of ABI. On November 16, 2020, Pfizer Inc. (NYSE: PFE) (“Pfizer”) completed the transaction to spin-off its Upjohn division and combine it with Mylan N.V. (Nasdaq: MYL) to form Viatris Inc. (Nasdaq: VTRS) (“Viatris”), triggering a Potential Adjustment Event as per the terms and conditions of the Deposit Notes in respect of the common shares of Pfizer, a Reference Share in the Reference Portfolio of the Deposit Notes. As stockholders received common shares of Viatris, they were sold and reinvested in common shares of Pfizer. As a result, the Initial Value of the common shares of Pfizer was adjusted as of the closing of the markets on November 16, 2020.