Commentary & Deal Flow

IPTs: 6NC5: SARON MS+85a

• Issuer: Bank of Montreal
• Ticker: BMO
• Issuer Domicile: Canada
• Format: Public Fixed-Rate Reset Notes
• Status: Senior Unsecured Notes
• Issuer Rating: Aa2 stbl. / A+ stbl. / AA+ stbl. (Moody's / S&P / Fitch)
• Instrument Rating (exp): A2 / A- / AA- (Moody's / S&P / Fitch)
• Rating Split: Issuer: Aa2 stbl. / A+ stbl. / AA+ stbl. (Moody's / S&P / Fitch), Issue: A2 / A- / AA- (Moody's / S&P / Fitch)
• Tenor: 6NC5
• Settlement Date: 03-Nov-26
• Optional Call/Reset Date: 03-Nov-31
• Maturity Date: 03-Nov-32
• Issue Size (in mm): Min. CHF 150mm
• Coupon: 1.45% p.a. (indicative) until the Reset Date on 03-Nov-31, unless redeemed on the Optional Redemption Date, the interest rate for the remaining term of one year will be determined as the sum of (i) the prevailing one-year SARON mid-swap rate and (ii) the initial margin of +85
• Spread/Yield: SARON MS +85.0 area // YTC 1.45% area // Govt.+102 area
• Lead Manager(s): UBS, Commerzbank, BMO Capital Markets
• SNB Repo-eligibility: At the discretion of the SNB, expected no
• Documentation: FinSA prospectus incorporating the Bank of Montreal's US$40,000,000,000 Note Issuance Programme Base Prospectus dated 26-Jun-26 and a first supplement dated 25-Aug-26.
• FinSA Prospectus: Delayed prospectus approval, in accordance with art. 51 FinSA
• Bail-In Acknowledgement: The Notes are subject to bail-in conversion under the Canadian bail-in regime
• Governing Law: Laws of Ontario and the federal laws of Canada applicable therein
• Covenants: PP
• SIX Listing: 30-Oct-26
• Denomination: CHF 5000
• Target Market: Target market as defined by the manufacturers domiciled in the EEA/UK (MiFID II/UK MiFIR product governance): eligible counterparties, professional clients and, in Switzerland only, retail clients (all distribution channels).
• Timing: Today's business, books can close at short notice