Bank of Montreal plans absolute return notes linked to oil & gas ETF

By Angela McDaniels

Tacoma, Wash., Aug. 5 – Bank of Montreal plans to price 0% contingent risk absolute return notes with digital upside due Aug. 31, 2018 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If the ETF return is positive, the payout at maturity will be par plus 17%.

If the ETF return is less than or equal to zero but not less than negative 40%, the payout will be par plus the absolute value of the ETF return.

If the ETF return is less than negative 40%, investors will be exposed to the ETF’s decline from its initial share price.

BMO Capital Markets Corp. is the agent.

The notes are expected to price Aug. 26.

The Cusip number is 06367TJH4.

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