BMO Launches €500 Million Green Bond for Renewable Energy and Agri Projects
BMO is issuing a €500 million green bond set to settle on March 24, 2026 to finance renewable energy, sustainable agriculture, and green building projects under its Sustainable Bond Framework. The framework, aligned with ICMA principles and UN SDGs, received a second-party opinion from Moody’s and will report annual impact.
1. Bond Offering Details
BMO announced a €500 million green bond issuance set to settle on March 24, 2026, with BMO Capital Markets as joint lead manager. The bond is part of a multi-year program designed to support client green initiatives and meet growing investor demand for sustainable debt.
2. Use of Proceeds and Framework
Proceeds will finance or refinance renewable energy, sustainable food and agriculture, and green building projects under BMO’s Sustainable Bond Framework. The framework defines eligible assets across eleven green, four social, and three transition categories to advance UN Sustainable Development Goals.
3. Framework Alignment and Oversight
The framework aligns with ICMA’s Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, and the Climate Transition Finance Handbook. BMO obtained a second-party opinion from Moody’s to validate its criteria and enhance credibility with investors.
4. Reporting and Impact Monitoring
BMO will publish a use-of-proceeds report within one year of issuance and include annual updates in its Sustainable Bonds Impact Report. This commitment ensures transparency and tracks environmental outcomes tied to the bond proceeds.