Toronto makes bid to host headquarters for new global defence bank that could create 3,500 jobs
Toronto launched its bid Wednesday to host a new defence-oriented world bank that could create up to 3,500 jobs in the Greater Toronto Area (GTA).
Vancouver, Halifax, Ottawa and Montreal are also vying for the headquarters of the Defence, Security and Resilience Bank (DSRB), which will serve 40 member countries, including NATO members and their Indo-Pacific allies. It is slated to be established by the end of 2026.
“This would be great for Canada but it absolutely should be in Toronto,” said Ontario Finance Minister Peter Bethlenfalvy.
“We’re the financial capital of Canada. We have the deepest talent pool, the biggest and most stable and strong capital market capability in all of Canada.”
Toronto also has the accountants, consultants, risk managers, as well as IT and legal experts the DSRB would require, Bethlenfalvy said. “It’s unparalleled and one of the top-ranked ecosystems in the world.”
He was joined for the bid launch at the TMX Market Centre by Premier Doug Ford, Toronto Mayor Olivia Chow, Julie Dzerowicz, who chairs the Federal Liberal Toronto Caucus, and industry partners.
“We’ve got deep defence and security expertise,” Bethlenfalvy said of the GTA.
Thirty per cent of the country’s defence sector jobs are in Ontario, he said. “We have some 900 defence organizations; so, we have a link there in various industries such as aerospace, (artificial intelligence), cybersecurity, (and) quantum robotics autonomy.”
There are several sites in the city that would be “first rate” for the DSRB headquarters, Bethlenfalvy said, though he declined to name them. “They need about 500,000 square feet is my understanding. We have multiple options.”
Toronto’s Pearson International Airport boasts flights from 200 destinations, he said, “the most of any airport in Canada, placing us within hours of the world’s major financial and political centres.”
He pointed out that Ontario is also home to multiple embassies. “We’ve got over 107 consular missions and 190 languages spoken. I think we’re one of the most multi-cultural cities on the planet.”
Canada’s reputation for “political and regulatory stability,” as well as “our geographic position” should bring the DSRB headquarters here, Bethlenfalvy said, noting Prime Minister Mark Carney’s brand “on the world stage” should help on that front.
A decision on the location for the defence bank’s new headquarters is expected early in the New Year.
“Ultimately, it’s the sovereign nations and the prime minister who will make the decision,” Bethlenfalvy said.
Toronto City Councillor Brad Bradford wrote a public letter to Carney recently advocating for Toronto as the ideal location for the headquarters.
“Toronto is the economic engine of Canada’s economy,” Bradford wrote in his letter, dated Dec. 10. “Our city produces roughly one fifth of the national GDP and anchors the country’s financial system. The institutions that finance the energy systems, logistics infrastructure, and digital networks of the DSRB will support (operations) here. Establishing the headquarters in Toronto puts the Bank in the necessary proximity to the vital partners it will need to attract capital and structure complex, multi-year investments.”
Announced this past spring, the DSRB could solve financial problems for countries, including Canada, that are under pressure to increase military spending.
The bank will be owned by its member nations, which would capitalize the bank so it would get a triple-A rating it could take to the bond market to raise money.
The theory is the bank would allow Canada and other countries to re-arm in the face of Russian and Chinese aggression.
“This multi-national bank would provide financing and guarantees (to countries that) are increasing their defence spending up to five per cent of GDP,” Bethlenfalvy said.
“Given the deep talent pool and the manufacturing and tech capabilities that we have here in Toronto and Ontario, it would lift everybody.”
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