Bank of Montreal closes issue of AT1 limited recourse capital notes

On September 16, 2025, Bank of Montreal (“BMO”) closed its previously announced public offering of US$1 billion of non-viability contingent capital ("NVCC") Additional Tier 1 (“AT1”) limited recourse capital notes, Series 7 (the "LRCNs").

The LRCNs will bear interest at a rate of 7.375% annually, payable quarterly, for the initial period ending, but excluding, November 26, 2036. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing 5-year U.S. Treasury Rate plus 2.579%. The LRCNs will mature on November 26, 2086.

In connection with the issuance of the LRCNs, BMO also issued NVCC non-cumulative 5-year fixed rate reset Class B preferred shares, Series 56 (the “preferred shares”) to be held by Computershare Trust Company of Canada, as trustee for BMO LRCN Trust (the “Trust”). In the case of non-payment of interest, principal or the redemption price on the LRCNs when due or an event of default, the recourse of each LRCN holder will be limited to that holder's proportionate share of the Trust's assets, which will consist of the preferred shares except in limited circumstances.

Net proceeds from the issuance of the LRCNs will be contributed to the general funds of BMO and will be utilized for general banking purposes.

Further information can be found on PR Newswire’s website.

BMO Financial Group is the eighth largest bank in North America by assets, with total assets of C$1.5 trillion as of July 31, 2026. BMO provides a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services across Canada, the United States, and select markets globally.