Canada signs defence bank treaty in Luxembourg Nov. 30

Canada and eight partner countries will gather in Luxembourg on Nov. 30 to sign the articles of agreement establishing a new multilateral defence financing bank, Finance Minister François-Philippe Champagne announced Monday, a day after Canada and the United Kingdom confirmed they would each develop separate but co-ordinated institutions.

Champagne said in a statement published by the Department of Finance Canada on Monday that the founding members of the Defence, Security and Resilience Bank — Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Türkiye and Ukraine — will sign at the Luxembourg ceremony. Membership remains open to other allies and close partners.

"In an increasingly uncertain and divided world, Canada is working to bring together like-minded partners to mobilize and deploy private capital in support of collective security by unlocking long-term financing, expanding defence industrial production, and building more resilient supply chains," Champagne said.

The bank will be headquartered in Canada, with a European hub in Luxembourg. Champagne said full operationalization is targeted for 2027.

On Saturday, Canada and the United Kingdom issued a joint statement from the Department of Finance Canada, also published by HM Treasury, saying the two countries had concluded it was best to develop two distinct but complementary institutions rather than bring the UK into the DSRB.

"We have mutually concluded that it is best to develop two distinct but complementary institutions that work in partnership," the joint statement said. The UK had been in discussions with Canada about how both the Multilateral Defence Mechanism and the DSRB could advance their shared objectives.

The statement said the two institutions "will be designed to work in close partnership, so that they can support each other on emerging industrial priorities, investment opportunities and strategic financing challenges" and together "will provide complementary tools to strengthen the defence industrial base and enhance collective defence readiness."

Champagne said the DSRB will aim for a AAA credit rating, which it will use to expand access to long-term financing, reduce financing costs and attract commercial investment. The bank is intended to address financing gaps facing both governments and defence companies, including small- and medium-sized enterprises.

"By leading the establishment of the DSRB with our partners, Canada is helping build a lasting pillar of collective security," Champagne said in the Monday statement.

The Nov. 30 signing builds on negotiations of the articles of agreement held in Montréal in spring 2026 and a declaration issued by the partner countries in July expressing their intention to establish the bank.

The articles of agreement are set to be signed in Luxembourg on Nov. 30.