On September 26, 2007, Bank of Montreal, through BMO Subordinated Notes Trust's initial public offering, raised $800 million in subordinated debt. This is one of the first subordinated debt offerings under the new April 2007 OSFI Innovative Tier 2B rules. It provides BMO with an efficient regulatory capital raising structure following Ottawa's 2006 income trust tax announcement. The BMO TSNs, which are guaranteed on a subordinated basis by Bank of Montreal, were issued by BMO Subordinated Notes Trust and were placed by a syndicate of agents led by BMO Capital Markets and included CIBC World Markets, Scotia Capital, RBC Capital Markets, TD Securities Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., Merrill Lynch Canada Inc., Desjardins Securities Inc. and Laurentian Bank Securities Inc.
Bank of Montreal and BMO Subordinated Notes Trust were advised by in-house counsel Neil Puddicombe and assisted by Rick Fullerton, John Jason and Kashif Zaman (corporate) and Andrew McGuffin (tax) of Osler, Hoskin & Harcourt LLP. BMO Capital Markets and the syndicate of agents were advised by Barry J. Ryan, Daniel Bénay, Frédéric Cotnoir and Andrew Parker (business law) and Gabrielle Richards and Jerald Wortsman (tax) of McCarthy Tétrault LLP.