BMO in its US$500 million inaugural additional Tier 1 note offering

On July 23, 2019, the Bank of Montreal (“BMO”) announced its US$500-million inaugural offering of additional Tier 1 notes. This relatively new form of capital expands the scope of available investor markets to Canadian banks. The coupon of 4.80% represents the strength of sup-port from a global investor base. The joint bookrunners on the transaction were BMO Capital Markets, Citi, Goldman Sachs and UBS.

The Bank of Nova Scotia was the first bank in Canada to launch an AT1 offering in October 2017, with Osler as its advisors.

Osler, Hoskin and Harcourt LLP acted as Canadian counsel to BMO with a team comprising Tim Hughes (Tax) and Rick Fullerton and Arlene Mack (Financial Services).