New Issue: BMO sells $11,000 of contingent risk absolute return notes on Energy Sector SPDR

By Kiku Steinfeld

Chicago, Nov. 28 – Bank of Montreal priced $11,000 of 0% contingent risk absolute return notes due March 31, 2025 linked to the Energy Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund finishes above its initial level, the payout at maturity will be par plus the gain.

If the fund finishes below its initial level but never closed below the 73% barrier level on day, the payout at maturity will be par plus the absolute value of the return, capped at 27%.

Otherwise, investors will be fully exposed to any losses.

BMO Capital Markets Corp. is the selling agent.

Issuer:	Bank of Montreal
Issue:	Contingent risk absolute return notes
Underlying fund:	Energy Sector SPDR
Amount:	$11,000
Maturity:	March 31, 2025
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any fund gain; if fund finishes below initial level but never closed below barrier level on any day, par plus absolute value of fund return, capped at 27%; otherwise, full exposure to fund’s decline
Initial level:	$78.75
Barrier level:	$57.49, 73% of initial level
Pricing date:	March 25, 2022
Settlement date:	March 30, 2022
Agent:	BMO Capital Markets Corp.
Fees:	1.2%
Cusip:	06368GLU9

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