Bank of Montreal closes issue of AT1 limited recourse capital notes
On September 16, 2020, Bank of Montreal (“BMO”) closed its previously announced offering of C$1.25 billion of 4.300% Additional Tier 1 (AT1) limited recourse capital notes, Series 1 (non-viability contingent capital (NVCC)).
Concurrent with the issuance of the notes, the bank also issued non-cumulative 5-year fixed rate reset first preferred shares Series 48 (non-viability contingent capital (NVCC)) to be held by Computershare Trust Company of Canada as trustee for BMO LRCN Trust. In case of non-payment of interest on or principal of the notes when due, the recourse of each note holder will be limited to that holder's proportionate share of the limited recourse trust's assets in respect of the notes, which will consist of Series 48 preferred shares except in limited circumstances.
Net proceeds from this transaction will be used for general banking purposes.
Further information can be found on Canada Newswire’s website.
BMO is a highly diversified financial services provider - the 8th largest bank in North America, by assets - with total assets of C$974 billion as of July 31, 2020.