Canada Hosts Charter Negotiations for New Allied Defence Financing Institution

Representatives from eighteen countries gathered in Montreal on March 23 to begin drafting the charter for the Defence, Security and Resilience Bank, a new multilateral institution designed to mobilize private capital for defence and security investment across allied nations.

The negotiations, which ran March 23 to 26, mark the first in-person round of charter talks. Isabelle Hudon, President and CEO of the Business Development Bank of Canada, is serving as Canada’s lead negotiator.

The DSRB would provide long-term, low-cost financing for defence and security initiatives, with particular focus on the capital gaps that constrain governments and industry suppliers, including small and medium-sized enterprises operating within complex, long-cycle procurement environments. The institution is designed to work alongside existing national and multilateral financing mechanisms rather than replace them.

The bank’s structure is designed to address a core financing gap among NATO allies. According to the DSRB Development Group, roughly 70 percent of NATO member nations face higher borrowing costs than top-rated sovereigns. The bank, targeting a AAA credit rating, would pool allied credit strength to unlock lower-cost capital for member governments and defence industry suppliers. Equity contributions made by member states would be recorded as assets in national accounts and count toward NATO GDP defence spending targets.

The bank’s headquarters location has not been determined. Canada has positioned itself as a candidate, with its financial sector depth and growing defence industrial base cited as assets. The founding charter and governance framework are expected to be defined as negotiations advance.



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