NEW YORK — International Business Machines Corp. is selling C$2.75 billion in Canadian corporate bonds, its first such offering in 14 years, as foreign firms accelerate their use of Canada's debt market during record Maple note issuance.
The four- and eight-year notes are designated for general corporate purposes and are expected to price Monday. IBM's last Canadian-dollar deal came in 2012, when it raised $500 million.
Foreign companies have issued a record volume of Maple notes this year. Offerings from Amazon.com Inc. and Alphabet Inc. have drawn new capital into Canada's corporate-debt market and broadened its issuer base.
The Canadian deal follows a U.S. dollar bond sale IBM completed in January. The company's shares have fallen 19 percent this year, the third-worst performance in the Dow Jones Industrial Average. Weak sales in its computer infrastructure and software divisions have weighed on results, and investor concerns persist over whether artificial intelligence will erode demand for IBM's legacy products.
The record pace of Maple note sales by non-Canadian issuers reflects strong appetite among Canadian investors for foreign corporate debt. Global firms increasingly view Canada as a viable capital-raising market outside their primary U.S. dollar funding channels.
The Dow Jones Industrial Average traded at $53,892, down 0.3 percent on the day.
