Bank of Montreal will issue 33.34 million common shares later this month to raise $1 billion and strengthen its Tier 1 ratio, the bank announced on Monday.

The bank expects the offering of shares, at a price of $30.00 per share, to close Dec. 24.

The capital will qualify as Tier 1 capital, and will be used for general corporate purposes.

“Our Tier 1 ratio is strong and will be further strengthened with this offering. Strengthening our capital ratio is prudent and supports continued growth and investment in the business as well as our ongoing commitment to our customers,” said Bill Downe, president and CEO of BMO Financial Group.

As of Oct. 31, the bank’s Tier 1 capital ratio was 9.77%. Following this issuance, its ratio will be roughly 10.4%.

The offering will be underwritten on a bought deal basis by a syndicate led by BMO Capital Markets. The bank also granted the underwriters an over-allotment option to purchase another 3.3 million common shares on the same terms within 30 days of closing.

If exercised, the maximum gross proceeds raised will be approximately $1.1 billion.