Bank of Montreal (BMO) has launched a new series of Principal-at-Risk Medium-Term Notes, branded as Income Notes, under a product supplement dated May 29, 2025. These structured securities offer contingent or guaranteed coupon payments and variable returns at maturity or early redemption, depending on the performance of underlying reference assets, such as indices, ETFs, or equities. The Notes are not conventional debt instruments and do not guarantee principal repayment, making them riskier than standard fixed-income products. They are unsecured, unsubordinated debt obligations of BMO and are not CDIC-insured.

BMO Capital Markets, a wholly owned subsidiary of BMO (also referred to as BMO Nesbitt Burns Inc.), acts as the lead dealer and calculation agent, facilitating pricing, hedging, and secondary market activity. Other participating dealers are not named in the supplement but are referenced generally, with fee-sharing arrangements and distribution activities detailed in the applicable pricing supplements. Legal matters related to the offering were advised by Torys LLP on behalf of BMO and Stikeman Elliott LLP on behalf of the dealers.

The Notes may be issued in Canadian dollars or other currencies, and specific issue sizes and returns will be outlined in individual pricing supplements. The instruments are eligible for registered accounts, subject to tax rules and currency considerations. As the offering involves market-based risks and discretionary determinations by BMO Capital Markets, investors are advised to review the base shelf and pricing supplements carefully.