Bank of Montreal has filed a Free Writing Prospectus for Digital Return Buffer Notes linked to the S&P 500® Index, due July 23, 2026. The notes offer a 11.00% digital return if the Final Level of the S&P 500 is greater than or equal to its Initial Level of 6,092.18.
Key features include:
- Principal protection up to a 10% decline in the index
- 1:1 loss exposure beyond 10% buffer, with maximum loss of 90%
- No interest payments or listing on securities exchanges
- Minimum denomination of $1,000
- Initial estimated value of $992.20 per $1,000 principal amount
Primary risks include potential principal loss, limited upside return capped at 11%, credit risk of Bank of Montreal, and no direct investment in the S&P 500. The notes will be sold through BMO Capital Markets Corp with up to 0.10% agent's commission.
Bank of Montreal has filed a free writing prospectus for Contingent Risk Absolute Return Notes due July 16, 2027, linked to the iShares MSCI Emerging Markets ETF. The notes offer 125% leveraged exposure to the ETF's performance, capped at a maximum return of 20% ($1,200 per $1,000 principal).
Key features include:
- If the ETF declines but stays above 80% of initial level (Barrier Level), investors receive positive returns matching the decline up to 20%
- If ETF falls below Barrier Level, investors lose 1% for each 1% decline with potential for total loss
- Notes priced at 100% ($1,000 denominations) with 2% agent commission
- Estimated initial value of $965.10 per $1,000 principal
The notes carry significant risks including no principal protection, limited upside potential, credit risk of Bank of Montreal, and no interest payments. They will not be listed on any securities exchange and are subject to market disruption adjustments.
Bank of Montreal is offering Contingent Risk Absolute Return Notes due July 16, 2027, linked to the iShares MSCI Emerging Markets ETF. The notes feature 125% leveraged upside exposure with a maximum return of 27% ($1,270 per $1,000 principal) and a unique downside protection mechanism.
Key features include:
- If the ETF appreciates, investors receive 125% of the gain up to a cap of 27%
- If the ETF declines but stays above the 80% barrier level, investors receive positive returns equal to the absolute value of the decline up to 20%
- If the ETF declines more than 20% (barrier event), investors lose 1% for each 1% decline in the ETF
- Notes will be issued at $1,000 denominations with an estimated initial value of $982.90
Important risks: Investors could lose entire principal, returns are capped at 27%, no interest payments, and notes are subject to Bank of Montreal's credit risk. The notes will not be listed on any securities exchange and BMO Capital Markets Corp. serves as the selling agent.
Bank of Montreal has issued $8.31 million in Digital S&P 500 Index-Linked Notes due April 21, 2027. These structured notes offer a unique payoff structure tied to the S&P 500 Index performance with a threshold mechanism.
Key features include:
- Principal amount: $1,000 per note
- Threshold settlement amount: $1,162.00 (16.2% return)
- Initial S&P 500 level: 6,025.17
- Threshold level: 87.50% of initial level
- Buffer rate: approximately 114.29%
If the final S&P 500 level is at or above 87.50% of the initial level, investors receive the full $1,162.00 per note. However, if it falls below this threshold, investors lose approximately 1.1429% for every 1% decline below the threshold level, potentially losing their entire investment. The notes' estimated initial value is $992.71, below the issue price of $1,000. These unsecured obligations carry Bank of Montreal's credit risk and are not FDIC insured.