Product Description
The Deposit Notes provide a return at the 9-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 10 Canadian energy companies and the EURO STOXX 50® Index.
The Deposit Notes are callable for redemption 4 years and 6 months after the Issuance Date at $135.59 per Deposit Note representing an annual compounded rate of return of approximately 7.00%.
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 3.70% as of December 2, 2014.
Note
On January 4, 2021, Husky Energy Inc. (TSX: HSE) (‘’Husky’’) closed its transaction pursuant to which it has become a wholly-owned subsidiary of Cenovus Energy Inc. (TSX: CVE) (‘’Cenovus’’), triggering a Substitution Event as per the terms of the Deposit Notes. As such, we hereby advise the Holders of the Deposit Notes that, as of the closing of the markets on January 5, 2021, the common shares of Husky have been replaced by the common shares of Cenovus as a Reference Asset in the Reference Portfolio of the Deposit Notes in accordance with the terms and conditions of the Information Statement. As a result, all calculations in respect of the Reference Portfolio Return that were based on the price of the common shares of Husky are, from January 6, 2021 until the Maturity Date, based on the price of the common shares of Cenovus. On January 24, 2020, Encana Corporation (TSX: ECA) (“Encana”) announced the completion of its reorganization, including the company rebranding under the name Ovintiv Inc. and the establishment of its corporate domicile in the United-States (NYSE : OVV). This event triggered a Substitution Event in connection with the Reference Portfolio of the Deposit Notes as per the terms and conditions of the Information Statement relating to the Deposit Notes. As such, we hereby advise the Holders of the Deposit Notes that, as of the closing of the markets on January 24, 2020, the common shares of Encana have been replaced by the common shares of Canadian Natural Resources Limited (TSX: CNQ) as a Reference Share in the Reference Portfolio of the Deposit Notes, in accordance with the terms and conditions of the Information Statement. As a result, all calculations in respect of the Reference Portfolio Return that were based on the price of the common shares of Encana are, from this date until maturity, based on the price of the common shares of Canadian Natural Resources Limited.