Bank of Montreal has had its legislative covered bond programme approved by Canada Mortgage & Housing Corp (CMHC), paving the way for it to re-enter the market after an absence of more than two years and leaving TD as the only legacy issuer yet to join the CMHC registry.

The programme was registered with CMHC on Friday, and is the sixth Canadian covered bond programme to comply with the country’s 2012 legal framework and additional requirements established and administered by CMHC.

Approval of the programme paves the way for BMO to return to the benchmark covered bond market, which it last visited in January 2012 with a US$2bn (Eu1.45bn, C$2.19bn) five year issue.

The issuer in last summer received SEC approval to issue in the US public market, but many of its country peers have been turning to the euro covered bond market for their first legislative deals after a long spell without euro supply from Canada.

Registration of BMO’s programme means that Toronto-Dominion Bank is the only legacy issuer left without an approved legislative covered bond programme.