Bank of Montreal closes issue of AT1 limited recourse capital notes due 2085

On July 29, 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 6 (the "LRCNs").

The LRCNs will bear interest at a rate of 6.875% annually, payable quarterly, for the initial period ending, but excluding, November 26, 2030. 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 2.976%. The LRCNs will mature on November 26, 2085.

Concurrent with the issuance of the notes, the BMO also issued 1,000,000 NVCC non-cumulative 5-year fixed rate reset Class B preferred shares, Series 55 to be held by Computershare Trust Company of Canada, as trustee for BMO LRCN 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 limited recourse trust's assets, which will consist of preferred shares Series 55 except in limited circumstances.

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

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

BMO is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2025.