IBM Returns to Canadian Bond Market After 14-Year Absence

IBM has returned to the Canadian bond market after a 14-year absence, issuing CAD 2.75 billion in bonds. The company's decision to issue Canadian-dollar-denominated corporate bonds marks its first foray into this market since 2009.

The transaction, which was priced at a spread of 120 basis points over the benchmark rate, indicates robust investor demand. According to sources, IBM will use the proceeds from the offering for general corporate purposes.

This move is part of a broader trend, with non-Canadian issuers already setting a record high for annual issuance volume this year in Canada's bond market. Major U.S. technology firms such as Amazon and Alphabet have also tapped into the Canadian bond market for funding.

IBM's decision to issue bonds in Canada reflects its strategy of leveraging capital markets across different regions to meet its funding needs.