BMO will use the proceeds to meet increased regulatory requirements. Credit: PiggyBank on Unsplash.

Canadian lender Bank of Montreal (BMO) has raised C$2.6bn ($1.9bn) to boost its capital via a public and private share offering.

Specifically, the lender raised approximately C$1.6bn ($1.17bn) of gross proceeds from the public offering at a price of C$118.6 ($87.57) per share and approximately C$1bn ($730m) from the concurrent private placement to investors, excluding BNP Paribas (BNPP).

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The private placement portion of the offering was subscribed by Caisse de dépôt et placement du Québec, Omers, Alberta Investment Management Corporation, Healthcare of Ontario Pension Plan, Public Sector Pension Investment Board and Canada Pension Plan Investment Board 

BMO issued 8,431,700 common shares pursuant to the concurrent private placement to these investors.

As per the initial announcement, the closing of the private placement to BNPP is subject to the closing of the bank’s previously announced acquisition of Bank of the West from BNPP.

Upon completion, BMO hopes to raise additional gross proceeds of approximately C$750m ($548.91m) from BNPP.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In addition, 13,575,750 common shares were issued as part of the public offering as the syndicate of underwriters in the offering decided to fully execute its over-allotment option.

BMO anticipates that combining the gross proceeds of the public offering and concurrent private placement will result in aggregate gross proceeds of around C$3.35bn ($2.45bn), with the net proceeds being roughly C$3.24bn ($2.37bn).

The lender will use the proceeds to boost its capital position to meet increased regulatory requirements and for general corporate purposes.

Earlier this month, the Office of the Superintendent for Financial Institutions (OSFI) said that as of 1 February 2023, the domestic stability buffer (DSB) level will increase by 0.5% to 3%.