Bank of Montreal issued $300 million of subordinated notes in the U.S. on Thursday.
The 12-year noncallable notes were priced to yield 6.13%, 83 basis points above Treasuries.
Merrill Lynch & Co. was lead manager.
"This is further evidence of Canadian banks coming back to the market this year after an absence of some years," said John Paulsen, analyst with Kidder, Peabody & Co.
He noted that Bank of Nova Scotia and Toronto-Dominion Bank have also tapped the U.S. market this year after a long absence.
"Investors are positive on Canadian banks in general," he said. "Asset quality is improving, and earnings are rebounding and will rebound further," he said.
Separately, Danske Bank of Denmark is marketing a $200 million issue of subordinated debt in the private placement market, according to a capital markets source. J.P. Morgan Securities is managing the placement.