The Bank of Montreal (BMO) has priced its issuance of CAD 1.25 billion in Series N Medium-Term Notes (Non-Viability Contingent Capital (NVCC)), with the notes scheduled to be issued on March 5, 2025. The notes will mature on March 5, 2035, carrying an initial interest rate of 4.077% per annum, with interest payments made semi-annually until March 5, 2030. After that date, if not redeemed, the interest will be paid quarterly based on a daily compounded CORRA plus a spread of 1.54%. The issue price of the notes was set at CAD 1,000 per CAD 1,000 principal amount, resulting in net proceeds to BMO of approximately CAD 1,245,625,000.

The issuance is being conducted through a consortium of agents, including BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Desjardins Securities Inc., iA Private Wealth Inc., CIBC World Markets Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Cedar Leaf Capital Inc., Laurentian Bank Securities Inc., Manulife Wealth Inc., Merrill Lynch Canada Inc., and Wells Fargo Securities Canada, Ltd. Osler, Hoskin & Harcourt LLP is serving as legal counsel for the issuer, while McCarthy Tétrault LLP is acting as legal counsel for the agents.

The net proceeds from this issuance will be added to the general funds of BMO and utilized for general banking purposes, including the redemption of outstanding capital securities and the repayment of other outstanding liabilities?.