Canada and eight partners sign the articles of agreement in Luxembourg on November 30
The Defence, Security and Resilience Bank (DSRB) will pursue a AAA credit rating and is aiming to raise around €100bn to lend at low cost to governments and defence contractors, with the articles of agreement to be signed in Luxembourg on November 30.
Finance and National Revenue Minister François-Philippe Champagne set out the signing date in a Monday statement from the Department of Finance Canada, which said the bank will be headquartered in Canada with a European hub in Luxembourg and reach full operationalization in 2027.
Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Türkiye and Ukraine are establishing the DSRB alongside Canada, with membership open to other allies and close partners.
The bank will rely on sound banking principles and financial backing from participating countries “to achieve a AAA credit rating,” Champagne said, which it will use to expand access to long-term financing, reduce financing costs, and help mobilize commercial investment.
Its tools will span sovereign financing, industrial expansion, critical supply chains and eligible procurement, available to eligible members “on equitable terms.”
Beyond lending, the DSRB will offer guarantees for lenders financing smaller firms seen as riskier borrowers, Reuters reported.
The Department of Finance Canada said the partners negotiated the articles in Montréal in spring 2026, following a declaration of intent they issued in July.
Britain will not join the bank, a person familiar with the matter told Reuters.
A joint media statement reported by The Canadian Press said the two governments agreed on October 25 to develop a framework for cooperation between the DSRB and the UK-led Multilateral Defence Mechanism (MDM).
They concluded it was better to build “two distinct but complementary institutions.”
London said it will work in lockstep with Canada on NATO spending targets.
A second person told Reuters the two sides could not agree on the headquarters location, the level of joint procurement, lending to members, and the rules around new members.
UK officials briefed on the talks told the Financial Times that Britain resisted dual headquarters in Canada and Europe, and that MDM countries wanted joint procurement as the central focus of an international organization carrying a AAA rating.
Reuters first reported in September 2025 that Britain had declined to join.
Germany had also declined, and a spokesperson for the German finance ministry told Reuters that Germany was an observer in the negotiations on the DSRB’s charter and is reviewing open questions.
The Financial Times quoted one European defence figure who said the UK “has chosen a model that makes defence financing conditional on joint procurement.”
The figure called the approach an attack on national sovereignty.
The MDM will focus on accelerating defence investment, joint procurement through financing, and pooling demand across NATO allies to reduce procurement costs, the person told Reuters, while the DSRB supports investment in defence industries and supply chains with more emphasis on single sovereign lending.
Britain has committed an initial £400m to the MDM, and the Netherlands, Poland and Finland have also signed up, according to the Financial Times, which reported that UK chancellor John Healey is expected to announce support for the mechanism in his budget this week.