BMO Raises US$1B in 7.375% NVCC Capital Notes to Bolster Tier 1 Capital
BMO sits 44% above its 52-week low of $119.84.
Summary
BMO issued US$1 billion of 7.375% NVCC capital notes maturing in 2086, qualifying as Additional Tier 1 capital. Net proceeds of US$990 million will fund general banking purposes.
Key Events · Financing and Capital Events · BMO
-
US$1B NVCC Capital Notes Issued
BMO issued US$1,000,000,000 aggregate principal amount of 7.375% Fixed Rate Reset Limited Recourse Capital Notes, Series 7 (NVCC), closing September 16, 2026.
-
Net Proceeds of US$990M
Priced at 100.000% of par with a 1.000% underwriting commission, netting US$990,000,000 before expenses. Proceeds will fund general banking purposes including redemption of outstanding capital securities.
-
60-Year Maturity with 2036 Reset
Notes mature November 26, 2086. Interest is fixed at 7.375% until November 26, 2036, then resets to U.S. Treasury Rate plus 2.579% every five years.
-
NVCC Conversion Risk
Upon a Trigger Event (OSFI declaring BMO non-viable or government capital injection), the notes convert to common shares via the Limited Recourse Trust structure. Noteholders bear shortfall risk.
Analysis · BMO · Finance
Bank of Montreal closed a US$1 billion offering of 7.375% Fixed Rate Reset Limited Recourse Capital Notes (NVCC), a regulatory capital instrument that qualifies as Additional Tier 1 capital. The notes carry a 60-year maturity with a first reset in 2036, and the proceeds will be used for general banking purposes including redeeming outstanding capital securities. This is a routine but significant capital raise for a bank of BMO's size — the 7.375% coupon reflects current market pricing for deeply subordinated bank debt, and the NVCC structure means noteholders bear conversion risk if OSFI declares the bank non-viable. The deal was priced at par with a 1% underwriting fee, netting US$990 million.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 29.9% of the 1661 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BMO was trading at $172.60 on NYSE in the Finance sector, with a market capitalization of approximately $119.9B. The 52-week trading range was $119.84 to $187.22. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.