BMO claimed a first-of-its-kind deal when it issued a labelled 'Indigenous bond' in 2025, with proceeds to back Indigenous-owned enterprises and communities.

Eligible expenditures include Indigenous-owned, mixed-use developments, "essential community infrastructure development" such as community halls, housing or schools, and general operational expenses and capital expense support, such as for equipment or legal costs. It has a maximum allocation period of 18 months.

The issuer chose potential impact reporting metrics, including the number of Indigenous communities supported, the number of Indigenous-owned businesses financed, and the number of Indigenous business owners reached.

Cedar Leaf Capital, Canada's first majority Indigenous-owned investment dealer, joined the syndicate as co-manager.

BMO obtained a second-party opinion from Moody's on its sustainable bond framework in 2024, which assigned a 'sustainability quality score' of 'very good'.

The CAD200 million ($145 million), four-year, callable 'Fixed-to-Floating Rate' eligible transaction attracted strong investor demand, resulting in a well-oversubscribed offering 

An Environmental Finance Sustainable Debt Awards judge commended BMO for "showing innovation in the bond structure as well as the process for structuring it".