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Canada Seeks to Name 10 Founding Members for Global Defence Bank at NATO Summit

The plan aims to raise up to £100 billion in low-cost finance for allied defence projects.

Overview

  • Isabelle Hudon, Canada’s lead negotiator, said on Thursday the government is aiming to co-announce a roster of about 10 founding members at next week’s NATO summit in Turkey.
  • Ottawa presents the proposed Defence, Security and Resilience Bank as a lender that could mobilize up to £100 billion to fund military infrastructure, defence manufacturing and resilience projects across allied states.
  • Hudon said the initial founding group would likely be largely European alongside Canada, that South Korea has a roughly 50-50 chance of joining later, and that no other G7 countries are close to signing up at this stage.
  • The bank’s viability hinges on securing strong capital commitments from creditworthy founders to achieve a triple-A rating so it can borrow cheaply at scale, and those capital negotiations remain unresolved.
  • The initiative is part of Prime Minister Mark Carney’s middle-powers push to broaden allied financing options as Europe tightens defence cooperation, with membership to remain open after launch and competition from other European programmes possible.