Nine countries commit to $133 billion global defence bank as NATO allies rethink military financing
Canada-led Defence, Security and Resilience Bank aims to issue AAA-rated bonds and reshape how allied nations fund their militaries, with JPMorgan and Deutsche Bank already on board.
Nine countries have formally committed to backing a new multilateral defence bank, Canada announced, marking what could become the largest institutional shake-up in how NATO allies finance their militaries since the alliance was founded in 1949.
The Defence, Security and Resilience Bank, or DSRB, is targeting up to £100 billion ($133 billion) in capital. To put that in perspective, that’s roughly the entire GDP of Morocco, earmarked specifically for making it cheaper and easier for allied governments to spend on guns, cyber defenses, and supply chain resilience.
What the DSRB actually is
The DSRB is designed to be a dedicated multilateral lender that issues AAA-rated bonds and offers guarantees to reduce the risk that commercial banks take on when lending to defence contractors and governments.
Canada is hosting the institution, a decision finalized in April 2026 following what’s been described as an extensive selection process. Luxembourg has been confirmed as the European headquarters, giving the bank a footprint on both sides of the Atlantic.
Prime Minister Mark Carney is championing the initiative. Isabelle Hudon, CEO of the Business Development Bank of Canada, is serving as lead negotiator.
The founding member countries are expected to be revealed at the NATO summit scheduled for July 7-8 in Ankara, Turkey. Preliminary discussions have reportedly involved representatives from 18 to 19 nations, with the founding membership starting at roughly ten countries, predominantly European. The long-term ambition is to expand membership to as many as 40 nations.
Why this is happening now
Small and medium-sized enterprises in defence supply chains stand to benefit the most. These companies often lack the balance sheet strength to access capital markets directly, and commercial banks have been increasingly reluctant to lend to the sector due to ESG screening and reputational concerns. The DSRB would specifically target this financing gap.
The institutional backing already assembled is notable. Canada’s Big Six banks are involved, alongside global heavyweights like JPMorgan, ING, Deutsche Bank, and Commerzbank.