BMO launches CDRs for European and Japanese multinational companies

Canadian investors gain access to global firms as BMO's new CDRs trade on Cboe Canada in February

BMO launches CDRs for European and Japanese multinational companies

Bank of Montreal has introduced five new Canadian Depositary Receipts (CDRs), providing investors access to international companies.  

The initial launch includes Europe-based Mercedes-Benz and Nestlé, along with Japan’s Toyota, Honda, and Nintendo.   

BMO structured these CDRs to allow Canadian investors to gain exposure to global companies in Canadian dollars while minimizing currency fluctuations. The bank intends to expand its CDR lineup in the coming months.   

“BMO’s CDRs are a made-in-Canada solution that offer investors greater access to companies that trade in foreign markets, while minimizing the currency risk associated with investing overseas,” said Bill Bamber, CEO of BMO Global Asset Management.   

The new CDRs will have an approximate opening share price of $10 and will be priced in Canadian dollars.  

These securities will trade on Cboe Canada, simplifying access to international companies for both individual investors and those working with advisors.   

BMO’s CDRs eliminate the need to convert Canadian dollars to foreign currencies, reducing currency-related risks and allowing investors to focus on company performance.  

The bank positioned these offerings as an efficient way to trade shares of major global companies, including those based in Germany, Switzerland, and Japan.   

Mercedes-Benz (MB) and Nestlé (NEST) will start trading on February 6, while Toyota (TOYM), Honda (HNDA), and Nintendo (NTDO) will begin trading on February 10, subject to final approval by the exchange. 

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