Beyond the Dollar Market: IBM Returns to Canadian Debt Market After 14 Years

IBM (IBM-US) is returning to the Canadian bond market after a 14-year absence, becoming the latest foreign company to issue debt in Canada this year. With tech giants like Amazon (AMZN-US) and Alphabet (GOOGL-US) joining the trend, the volume of 'Maple bonds'—bonds issued in Canada by non-Canadian companies—has already reached a record high in 2025.

According to sources, IBM plans to issue 4-year and 8-year bonds, with pricing expected on Monday (May 10). Proceeds will be used for general corporate purposes. The issuance size and initial pricing terms have not yet been disclosed.

Data compiled by Bloomberg shows IBM last issued Canadian dollar-denominated bonds in 2012, raising 500 million Canadian dollars. Its most recent U.S. dollar bond issuance was in January 2025. 'Maple bonds' refer to bonds issued by foreign companies in the Canadian market and denominated in Canadian dollars.

Foreign corporate bond issuance in Canada has surged this year, with total volumes already surpassing previous records. The entry of major tech firms like Amazon and Alphabet is not only expanding corporate funding options but also reshaping the Canadian corporate bond market.

IBM's business performance has been under pressure this year, with weak sales in computer infrastructure and related software. Although the company has shifted its focus toward software in recent years, some investors remain concerned that rapid advancements in artificial intelligence (AI) could disrupt IBM's products and business model.

IBM's stock has declined 19% year-to-date, ranking third from the bottom among Dow Jones Industrial Average components. Its return to the Canadian bond market underscores how large corporations are actively diversifying their financing channels and leveraging multiple markets to secure capital.