IBM Re-Enters Canadian Bond Market with $2.75 Billion Deal

International Business Machines Corp., or IBM, has returned to the Canadian corporate bond market after a 14-year hiatus. The company completed a C$2.75 billion (approximately US$1.97 billion) bond issuance on Monday, marking its first Canadian-dollar-denominated bond offering since 2012.

The transaction was split into 4-year and 8-year tranches, with the longer-dated 8-year notes pricing at a spread of 120 basis points over the benchmark rate. This is slightly tighter than initial pricing discussions with the market, indicating solid investor demand that allowed IBM to complete the deal at a relatively lower financing premium.

IBM's return to the Canadian bond market reflects how major global corporations are actively seeking financing channels beyond the U.S. dollar market. In recent years, the Canadian bond market ecosystem has undergone significant transformation, with foreign corporate bond issuance in Canada setting a new record this year.