Filed Pursuant to Rule 433

Registration Number 333-190160


€1,000,000,000 1.250% Notes Due May 26, 2023
International Business Machines Corporation
November 19, 2014
Pricing Term Sheet




International Business Machines Corporation

Issuer Ratings*


Aa3/AA-/A+ (Moody’s/S&P/Fitch)



SEC Registered



Registered Form

Trade Date


November 19, 2014

Settlement Date


November 26, 2014 (T+5)



Application will be made to list the Notes on the New York Stock Exchange



Barclays Bank PLC, Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, London Branch and The Royal Bank of Scotland plc



Banco Santander, S.A. and Banca IMI S.p.A.






May 26, 2023

Interest Payment Date


May 26 of each year

First Payment Date


May 26, 2015

Benchmark Bund


DBR 1.500% due May 15, 2023

Benchmark Bund Yield



Spread to Benchmark Bund


+63.9 bps

Mid Swaps Yield



Spread to Mid Swaps


+40 bps

Yield to Maturity





1.250% (payable annually)

Make-Whole Call



Reference Bund


DBR 1.500% due May 15, 2023

Spread to Reference Bund


+10 bps

Price to Public



Underwriting Discount



Price to Issuer



Day Count


Actual / Actual (ICMA)

Minimum Denomination


€100,000 and integral multiples of €1,000 in excess thereof

CUSIP / ISIN / Common Code


459200 HY0 / XS1143163183 / 114316318


*Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.


The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.  Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering.  You may get these documents for free by visiting EDGAR on the SEC Web site at  Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Barclays Bank PLC at (888) 603-5847, Credit Suisse Securities (Europe) Limited at (800) 221-1037, Deutsche Bank AG, London Branch at (800) 503-4611 or The Royal Bank of Scotland plc at (866) 884-2071.


This pricing term sheet supplements the preliminary form of prospectus supplement issued by International Business Machines Corporation on November 19, 2014 relating to its Prospectus dated July 26, 2013.