Canadian cities offer new office space, incentives to host proposed defence bank

Five Canadian cities are competing to host the headquarters of a proposed multilateral defence bank, which aims to raise $135 billion for defence projects in countries struggling to access cheaper finance.

Five Canadian cities are competing to host the headquarters of a proposed multilateral defence bank, hoping to attract thousands of finance and other jobs at a time of economic uncertainty. Prime ‌Minister Mark Carney, who has sought to raise Canada's profile on the global stage and bring so-called middle power countries together, announced in April that Canada would host the Defence, Security and Resilience Bank. The bank aims to raise $135 billion to fund defence projects, particularly in countries that struggle to access cheaper finance. Canada hopes the bank will let small and ‌medium-sized defence firms meet a surge in demand for weapons and other military equipment, particularly since the Ukraine war, and argues that other initiatives - including a European Union ‌loan programme - have not done enough. Now, Toronto, Montreal, Ottawa, Halifax and Vancouver want to host the bank's headquarters. The cities hope for an economic boost after U.S. tariffs hit the country's steel and auto sectors. But the bank's success will depend on the number of countries that sign up to become members, and no major economies have publicly committed to it so far. Germany and Britain have distanced themselves from the project.

Canada's finance ⁠ministry, which ​will decide which city hosts the bank, says ⁠the country is working with allies and partners to form a group of founding nations. Industry watchers expect a decision on the bank's location in the second half of the year, and more clarity on ⁠which countries will back it after the NATO meeting in Ankara next month. FINANCE CAPITAL OR MANUFACTURING HUB? Ontario says the bank would have access to a C$500 million "Resilience Bond" to fund defence ​projects if Toronto, Canada's largest city and financial center, is selected. The provincial government said the bank would create 3,500 jobs directly and indirectly employ thousands more. Majority ⁠French-speaking Montreal, considered the front-runner by several industry sources Reuters interviewed, is home to aerospace and defence companies, including aircraft maker Bombardier. A non-profit development agency that works with the government, Montreal International, says it will offer lower-cost ⁠services ​to the bank during its launch. Colton LeBlanc, Nova Scotia’s minister of growth and development, is touting capital Halifax as an ideal base for the bank, saying the province has the highest defence spending per capita in the country, the country's largest naval base and is home to about 140 defence and aerospace businesses. The province could ⁠offer a payroll rebate program or a capital investment tax credit to the bank to boost its chances of hosting it, LeBlanc said.

Vancouver would offer a "concierge service office" ⁠to help house and settle staff from the ⁠bank, said Bridgitte Anderson, CEO of the Greater Vancouver Board of Trade. The city also has office space downtown ready for the proposed bank, Anderson said. Ottawa has highlighted being home to major financial and government entities including the Bank of Canada and the banking regulator ‌as well as 130 ‌embassies as part of its pitch to host the bank.