NEW YORK — International Business Machines Corp. entered the Canadian bond market this week for the first time in 14 years, offering four- and eight-year notes with pricing expected Monday.
IBM's last Canadian dollar bond sale, in 2012, raised $500 million. Proceeds from the current offering are directed toward general corporate purposes.
The re-entry comes during a record year for foreign firms issuing Canadian dollar-denominated debt, known as Maple notes. Amazon.com Inc. and Alphabet Inc. have also tapped the market this year.
Foreign issuers are drawn by Canada's lower interest rates and favorable currency exchange rates, which reduce funding costs for non-Canadian corporations diversifying their capital sources.
Issuance has also been lifted by a surge in investor demand following a structural market change in early 2025.
Canada's bond market has absorbed increased government supply from Ottawa's spending plans without a material widening in spreads. Non-residents' holdings of Government of Canada bonds reached a record share in May, reflecting the depth of foreign buyer demand.
IBM's most recent U.S. dollar bond sale occurred in January. The company has struggled this year with weak sales in its computer infrastructure and related software divisions, and investors have grown concerned that artificial intelligence could erode demand for IBM's core software franchise.
IBM shares have dropped 19 percent this year, making the stock the third-worst performer in the Dow Jones Industrial Average.
