BMO First North American Bank to Issue Labelled Indigenous Bond in Support of Indigenous-Owned Businesses and Indigenous Communities

Executive Summary

• BMO announced a CAD $200 million, 4‑year callable (4NC3) Fixed‑to‑Floating Rate Indigenous Bond.
• Proceeds will be allocated to Indigenous‑owned enterprises and communities under BMO’s Sustainable Bond Framework.
• The bond is being issued with Cedar Leaf Capital Inc. as co‑manager; closing expected on October 27, 2025, with public reporting of use of proceeds thereafter.

Key Details

• Bond Size & Terms: CAD $200 million, 4‑year callable (callable after 3 years), Fixed‑to‑Floating rate structure.
• Purpose of Proceeds: Funding Indigenous‑owned businesses and Indigenous communities in line with BMO’s Sustainable Bond Framework.
• Framework Alignment: Eligible assets span eleven green, four social, and three transition categories; aligned with UN SDGs, ICMA Green/Social/Transition Principles, and supported by Moody’s second‑party opinion.
• Syndicate Participants: BMO Capital Markets – Lead Agent; Cedar Leaf Capital Inc. – Co‑manager (first majority Indigenous‑owned investment dealer in the syndicate).
• Closing Date: Expected on October 27, 2025.
• Reporting Commitment: BMO will publicly disclose use of proceeds within one year of issuance and annually thereafter.

Notable Quotes

“For more than thirty years, BMO's Indigenous Banking Unit has worked closely with Indigenous communities… we are excited to be the first bank in North America to issue a labelled Indigenous Bond to support our work with Indigenous‑owned businesses and Indigenous communities.” – Jonathan Hackett, Head of Sustainable Finance, BMO.