Walmart (WMT.US) plans to raise $6.5 billion through bond issuance: first attempt at a Canadian dollar bond, diversifying financing to support expansion expenditures.

According to information from Zhihui Finance APP, Walmart (WMT.US) plans to raise approximately $6.5 billion through the issuance of US dollar and Canadian dollar bonds. The world’s largest retailer is seeking to diversify its financing sources amid elevated expansion spending.

According to sources familiar with the matter, Walmart has launched a 5 billion Canadian dollar (approximately $3.55 billion) Canadian dollar bond offering, marking its first-ever issuance of bonds in Canadian dollars. Another source indicated the company has priced $3 billion in US dollar bonds. Both sources requested anonymity as they are not authorized to speak publicly.

Previously, sources reported that Walmart hoped to raise at least $5 billion through these transactions.

Estimates compiled by market analysts suggest that Walmart has ramped up investments in recent years as part of plans to open new stores, expand e-commerce capabilities, and partially automate operations. Next year’s spending is projected to reach a record $29 billion. Furthermore, Walmart has about $3.3 billion in bonds maturing next year.

Sources stated that the US dollar bond issuance attracted over $14 billion in investor demand at its peak. The maturities range from 3 to 10 years, with the 10-year notes yielding just 0.45 percentage points above US Treasuries. Walmart typically only issues bonds once a year; the company already entered the US market in April, raising $4.25 billion at that time.

With this inaugural Canadian dollar bond issuance, the $950 billion market cap company is following the lead of US tech giants Alphabet and Amazon, which both issued Canadian dollar bonds earlier this year to fund investments in artificial intelligence infrastructure.

For US borrowers, issuing Canadian dollar bonds offers diversification of both currency and investor base, while local investors are eager to scoop up bonds from foreign issuers to broaden their exposure across industries and issuers.

Analysts Poonam Goya and Sydney Goodman said in a report to clients last week that with rising inflation and gasoline prices squeezing household budgets, Walmart is set to expand its customer base and capture a greater share of household spending.

On Monday, four companies including consumer goods manufacturer Kimberly-Clark collectively issued $10.4 billion in investment-grade US dollar bonds.

Banks participating in at least one of Walmart’s bond offerings include Bank of America and BNP Paribas. These banks either declined to comment or did not respond to requests for comment.