Mr. Jeff Roman reports

BANK OF MONTREAL ANNOUNCES SUBORDINATED NOTES ISSUE

Bank of Montreal has arranged a domestic public offering of $1.25-billion of subordinated notes (non-viability contingent capital (NVCC)) through its Canadian medium-term note program. The net proceeds from this offering will be added to the general funds of the bank and will be utilized for general banking purposes, which may include the redemption of outstanding capital securities of the bank, and/or the repayment of other outstanding liabilities of the bank.

The notes bear interest at a fixed rate of 4.077 per cent per annum (paid semi-annually) until March 5, 2030, and at a daily compounded CORRA (Canadian overnight repo rate average) plus 1.54 per cent thereafter (paid quarterly) until their maturity on March 5, 2035. The expected closing date is March 5, 2025. BMO Capital Markets is acting as lead agent on the issue.

The bank may, at its option, with the prior approval of the Office of the Superintendent of Financial Institutions Canada, redeem the notes on or after March 5, 2030, at par, in whole at any time or in part from time to time, on not less than 10 days and not more than 60 days of notice to registered holders, at a redemption price that is equal to par, together with accrued and unpaid interest to, but excluding, the date fixed for redemption.

At any time on or after a regulatory event date or the date of the occurrence of a tax event prior to March 5, 2030, the bank may, at its option, with the prior approval of the superintendent, on giving not more than 60 nor less than 10 days of notice to the registered holders of the notes, redeem all (but not less than all) of the notes at a redemption price that is equal to the greater of the Canada yield price and par, together in either case with accrued and unpaid interest to, but excluding, the date fixed for redemption.

About Bank of Montreal

BMO is the eighth largest bank in North America by assets, with total assets of $1.5-trillion as of Jan. 31, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets, and investment banking products and services, to 13 million customers across Canada and the United States, and in select markets globally. Driven by a single purpose, to boldly grow the good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future and inclusive society.