BMO to redeem $1 billion Series K notes on July 22
Bank of Montreal will redeem $1 billion of its 1.928% Series K Medium-Term Notes on July 22, 2026, at par value plus accrued interest. The notes, originally due in 2031, are subordinated indebtedness classified as Non-Viability Contingent Capital. The Office of the Superintendent of Financial Institutions has approved the redemption.
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Bank of Montreal announced it will redeem all of its $1 billion 1.928% Series K Medium-Term Notes (Non-Viability Contingent Capital (NVCC)) (Subordinated Indebtedness) First Tranche due July 22, 2031. The redemption is scheduled for July 22, 2026, at a price equal to 100% of the principal amount, plus accrued and unpaid interest up to, but excluding, the redemption date. Interest on the notes will cease to accrue following the redemption date.
The Office of the Superintendent of Financial Institutions has approved the redemption. Notice of the redemption will be delivered to holders of the notes in accordance with the terms of the related indenture.
Key Details of the Redemption
| Detail | Information |
|---|---|
| Issuer | Bank of Montreal |
| Instrument | Series K Medium-Term Notes (NVCC) (Subordinated Indebtedness) First Tranche |
| Principal Amount | $1 billion |
| Coupon Rate | 1.928% |
| Original Maturity Date | July 22, 2031 |
| Redemption Date | July 22, 2026 |
| Redemption Price | 100% of principal amount plus accrued interest |
BMO Financial Group reported total assets of $1.5 trillion as of April 30, 2026. The bank provides personal and commercial banking, wealth management, global markets, and investment banking products and services across Canada, the United States, and select markets globally.
How does BMO plan to refinance the $1 billion liability given current interest rate environments?
Will the redemption of these NVCC notes impact BMO's future capital ratios or regulatory requirements?
Does this early redemption signal a strategic shift in BMO's approach to managing subordinated debt?
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