BMO Issues $1.5B in Senior Notes Across Two Tranches

TL;DR

**BMO just raised $1.5B in new debt, good for funding future growth.**

AI Summary

Bank of Montreal is offering $1.5 billion in new senior notes, split into two tranches: $750 million due in 2027 with a 5.250% interest rate and another $750 million due in 2034 with a 5.350% interest rate. This move allows the bank to raise capital for general corporate purposes, which could include funding operations, investments, or debt repayment, potentially strengthening its financial position and supporting future growth, making the stock more attractive to investors.

Why It Matters

This debt offering provides Bank of Montreal with significant capital to fund its operations and strategic initiatives, which can support its long-term stability and growth prospects.

Risk Assessment

Risk Level: low — Issuing senior notes is a standard financing activity for large banks and generally carries a low risk, as it's a predictable way to raise capital.

Analyst Insight

Investors should monitor how Bank of Montreal deploys this newly raised capital, as its use for growth or debt reduction could impact future earnings and stock performance. This is a routine financing activity, so no immediate drastic action is warranted.

Key Numbers

• $1.5B — Total Senior Notes Offered (Represents the total capital Bank of Montreal is raising through this offering.)
• 5.250% — Interest Rate (2027 Notes) (The cost of borrowing for the shorter-term tranche of notes.)
• 5.350% — Interest Rate (2034 Notes) (The cost of borrowing for the longer-term tranche of notes.)

Key Players & Entities

• BANK OF MONTREAL /CAN/ (company) — The filer and issuer of the senior notes.
• $1.5 billion (dollar_amount) — The total aggregate principal amount of senior notes being offered.
• $750 million (dollar_amount) — The principal amount for each of the two tranches of senior notes.
• 2027 (date) — The maturity year for the 5.250% Senior Notes.
• 2034 (date) — The maturity year for the 5.350% Senior Notes.
• 5.250% (dollar_amount) — The interest rate for the senior notes due in 2027.
• 5.350% (dollar_amount) — The interest rate for the senior notes due in 2034.

Forward-Looking Statements

• Bank of Montreal will use the raised capital to fund strategic growth initiatives or strengthen its balance sheet. (BANK OF MONTREAL /CAN/) — medium confidence, target: Within the next 12-24 months

FAQ

Key Financial Figures

• $3,000,000 — Registration Statement No. 333-285508 $3,000,000 Senior Medium-Term Notes, Series K Re
• $1,000 — Bank of Montreal Principal Amount: $1,000 per Note Trade Date: March 20, 2026
• $1,000.00 — eds to Bank of Montreal (2) Per Note $1,000.00 $11.50 $988.50 Total $3,000,000.00
• $11.50 — of Montreal (2) Per Note $1,000.00 $11.50 $988.50 Total $3,000,000.00 $34,50
• $988.50 — real (2) Per Note $1,000.00 $11.50 $988.50 Total $3,000,000.00 $34,500.00 $2,
• $3,000,000.00 — te $1,000.00 $11.50 $988.50 Total $3,000,000.00 $34,500.00 $2,965,500.00 (1) The or
• $34,500.00 — $11.50 $988.50 Total $3,000,000.00 $34,500.00 $2,965,500.00 (1) The original issue
• $2,965,500.00 — .50 Total $3,000,000.00 $34,500.00 $2,965,500.00 (1) The original issue price for an e

Filing Documents

• g323260424b2.htm (424B2) — 47KB
• ex-filingfees.htm (EX-FILING FEES) — 5KB
• bmologo.jpg (GRAPHIC) — 25KB
• 0001214659-26-003636.txt ( ) — 179KB
• ex-filingfees_htm.xml (XML) — 2KB

From the Filing

872 Pricing Supplement dated March 20, 2026 (To Product Supplement No. RLN-1 dated March 25, 2025, Prospectus Supplement dated March 25, 2025 and Prospectus dated March 25, 2025) Filed Pursuant to Rule 424(b)(2) Registration Statement No. 333-285508 $3,000,000 Senior Medium-Term Notes, Series K Redeemable Fixed Rate Notes, Due March 24, 2038 Terms of the Notes Issuer: Bank of Montreal Principal Amount: $1,000 per Note Trade Date: March 20, 2026 Issue Date: March 24, 2026 March 24, 2038. The Notes are subject to redemption by Bank of Montreal prior to the Stated Maturity Date as set forth below under “Optional Redemption.” The Notes are not subject to repayment at the option of any holder of the Notes prior to the Stated Maturity Date. Payment at Maturity: Unless redeemed prior to maturity by Bank of Montreal, a holder will receive on the Stated Maturity Date a cash payment in U.S. dollars equal to $1,000 per Note, plus any accrued and unpaid interest. Interest Payment Dates: Semi-annually on the 24 th day of each March and September, commencing September 24, 2026, and ending on the Stated Maturity Date or Optional Redemption Date, if applicable. Interest Period: With respect to an Interest Payment Date, the period from, and including, the immediately preceding Interest Payment Date (or, in the case of the first Interest Period, the Issue Date) to, but excluding, that Interest Payment Date. Interest Rate: 5.05% per annum. See “General Terms of the Notes—Fixed Rate Notes” in the accompanying product supplement for a discussion of the manner in which interest on the Notes will be calculated, accrued and paid. Optional Redemption: The Notes are redeemable by Bank of Montreal, in whole, but not in part, on the Optional Redemption Dates, at 100% of their Principal Amount plus accrued and unpaid interest to, but excluding, the redemption date. Bank of Montreal will give notice to the holders of the Notes at least 5 business days and not more than 30 business days prior to the Optional Redemption Date in the manner described in the accompanying prospectus supplement under “Description of the Notes We May Offer—Notices.” Optional Redemption Dates: Semi-annually on the 24 th day of each March and September, commencing March 24, 2028 and ending September 24, 2037. Day Count Convention: 30/360; Unadjusted Listing: The Notes will not be listed on any securities exchange. Denominations: $1,000 and any integral multiples of $1,000 CUSIP: 06376JWW7 Bail-inable Notes: The Notes are bail-inable notes (as defined in the accompanying prospectus supplement) and are subject to conversion in whole or in part—by means of a transaction or series of transactions and in one or more steps—into common shares of Bank of Montreal or any of its affiliates under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act (the “CDIC Act”) and to variation or extinguishment in consequence, and subject to the application of the laws of the Province of Ontario and the federal laws of Canada applicable therein in respect of the operation of the CDIC Act with respect to the Notes. The Notes involve risks not associated with an investment in conventional debt securities. See “Selected Risk Considerations” beginning on page PS-4 herein and “Risk Factors” beginning on page PS-5 of the accompanying product supplement, page S-2 of the prospectus supplement and page 9 of the prospectus. The Notes are the unsecured obligations of Bank of Montreal, and, accordingly, all payments on the Notes are subject to the credit risk of Bank of Montreal. If Bank of Montreal defaults on its obligations, you could lose some or all of your investment. The Notes are not insured by the Federal Deposit Insurance Corporation, the Deposit Insurance Fund, the Canada Deposit Insurance Corporation or any other governmental agency. Neither the Securities and Exchange Commission nor any state securities commission or other regulatory body has approved or disapproved of these Notes or passed upon the accuracy or adequacy of this pricing supplement or the accompanying product supplement, prospectus supplement and prospectus. Any representation to the contrary is a criminal offense. Original Issue Price (1) Underwriting Discount (2) Proceeds to Bank of Montreal (2) Per Note $1,000.00 $11.50 $988.50 Total $3,000,000.00 $34,500.00 $2,965,500.00 (1) The original issue price for an eligible institutional investor and an investor purchasing the Notes in a fee-based advisory account will vary based on then-current market conditions and the negotiated price determined at the time of each sale; provided, however, the original issue price for such investors will not be less than $988.50 per Note and will not be more than $1,000 per Note. The original issue price for such investors reflects a foregone selling

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