The DSRB was set up by the non-profit DSRB Development Group to support NATO’s recent commitment to invest 5% of gross domestic product (GDP) on defence and security-related spending. The initiative arrives as European governments accelerate defence investments in response to geopolitical tensions and the urgent need to reinforce military capabilities.
“The Defence, Security and Resilience Bank is the kind of bold, coordinated initiative we believe Europe and its allies urgently need. ING is proud to support it,” said Mark Pieter de Boer, ING’s chief commercial officer.
De Boer added: “We cannot meet today’s security challenges with yesterday’s financial tools. As a big European bank, we support the societies we operate in. Clearly there now is a bigger need for financing of defence activities focused on protecting Europe.”
The DSRB will leverage the capital markets expertise of its founding banks to issue highly-rated bonds, enabling governments to finance defence production and procurement. It will also support the modernisation of defence systems and strengthen supply chains across Europe and the Indo-Pacific region.
“This is not just about financing defence – it is about redefining deterrence for the modern era,” said Kevin Reed, President of the DSRB Development Group. “In the 20th century, deterrence meant industrial mobilisation. In the 21st, it means financial partnership.”
The participating banks will also provide technical support on sovereign lending instruments, capital structuring, risk and liability management, and credit ratings. Their combined role is to channel funding to key actors in the defence sector efficiently and responsibly.
A detailed plan and draft charter for the DSRB are being developed by a team of bankers, lawyers, defence investment specialists, and senior defence policy experts. The initiative is endorsed by the European Parliament and a UK government-led task force, with additional financial institutions expected to join in later phases.
Source: ING (press release).
