New Issue: BMO prices $2.12 million contingent risk absolute return notes on iShares ETF

By Kiku Steinfeld

Chicago, April 26 – Bank of Montreal priced $2.12 million of 0% contingent risk absolute return notes due Feb. 3, 2026 linked to the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.

If the ETF finishes above the initial level, the payout at maturity will be par plus 200% of the ETF gain, subject to a maximum return of par plus 30%.

If the ETF declines by no more than 25%, the payout will be par plus the absolute value of the ETF return.

Otherwise, investors will lose 1% for each 1% decline from initial level.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Contingent risk absolute return notes
Underlying fund: iShares MSCI EAFE ETF
Amount:	$2,115,000
Maturity:	Feb. 3, 2026
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 200% of any ETF gain, capped at par plus 30%; if ETF declines but finishes at or above the 75% barrier, par plus absolute value of the return; otherwise, 1% loss per 1% decline from initial level
Initial level:	$74.46
Barrier level:	$55.85; 75% of initial level
Pricing date:	July 31, 2023
Settlement date:	Aug. 3, 2023
Agent:	BMO Capital Markets Corp.
Fees:	1%
Cusip:	06374VZG4

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