Walmart Inc. is selling US dollar bonds for a second time this year and exploring a debut Canadian debt offering to diversify funding amid a spending surge. The retailer aims to raise at least $2.5 billion through a four-tranche US bond offering with maturities from three to 10 years, priced at a 0.75 percentage point yield premium over Treasuries for the longest tenor. It has also engaged Bank of America, Bank of Nova Scotia, and Toronto-Dominion Bank to gauge interest in a potential Canadian dollar bond issue targeting at least C$3.5 billion ($2.5 billion) across four tranches spanning four to 30 years.
No final decision on size has been made. Walmart plans to spend a record $29 billion next year on store expansion, e-commerce growth, and automation, with about $3.3 billion of bonds maturing next year. The move follows US tech giants Alphabet and Amazon, which have tapped the Canadian market this year to fund AI infrastructure.
Local investors are eager for foreign debt to diversify portfolios. Shorter-dated Canadian bonds may price at four basis points wider than Hydro One Ltd, while longer maturities could be up to seven points tighter. Walmart last issued US bonds in April, raising $4.25 billion.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing