New Issue: BMO sells $565,000 barrier enhanced return notes on index, ETF basket

By Kiku Steinfeld

Chicago, Sept. 20 – Bank of Montreal priced $565,000 of 0% barrier enhanced return notes due March 10, 2028 linked to an unequally weighted basket consisting of the iShares MSCI EAFE ETF with a 20% weight, the iShares MSCI Emerging Markets ETF with a 10% weight, the SPDR S&P 500 ETF Trust with a 35% weight and the Russell 2000 index with a 35% weight, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 126.7% of any gain of the basket.

Investors will receive par if the basket falls by up to 35% and will be fully exposed to the decline of the basket if it falls beyond the 65% barrier level.

BMO Capital Markets Corp. is the underwriter.

Issuer:	Bank of Montreal
Issue:	Barrier enhanced return notes
Basket components:	iShares MSCI EAFE ETF (20% weight), iShares MSCI Emerging Markets ETF (10% weight), SPDR S&P 500 ETF Trust (35% weight) and Russell 2000 index (35% weight)
Amount:	$565,000
Maturity:	March 10, 2028
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 126.7% of any gain of basket; par if basket falls by up to 35%; otherwise, full exposure to decline of basket from its initial level
Initial index level:	1,878.724 for Russell, $398.27 for SPDR, $69.52 for EAFE, $38.74 for EM
Barrier level:	65% of initial level
Pricing date:	March 7, 2023
Settlement date:	March 10, 2023
Underwriter:	BMO Capital Markets Corp.
Fees:	0.625%
Cusip:	06374VQH2

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