CIBC commits $2 billion to Canadian defence and dual-use SMBs

TORONTO — CIBC has pledged $2 billion to finance domestic small and medium-sized businesses in defence and dual-use sectors, targeting firms building infrastructure, energy, cybersecurity, digital capabilities and advanced technologies.

President and CEO Harry Culham cast the facility as a bet on Canada’s industrial base as Ottawa ramps defence spending under Prime Minister Mark Carney. “Canadian businesses in the defence and resiliency ecosystem have the expertise and ambition to lead,” Culham said. “Our $2-billion commitment reflects our confidence in Canadian businesses and our determination to help them access the financial support they need to scale and succeed.”

The pledge lands amid a rapid bank pivot into defence finance. RBC this week launched a $1.4 billion fund for scaling Canadian tech, including defence firms; BMO signalled plans to mobilize up to $70 billion over a decade across sectors such as defence. Scotiabank is preparing defence bonds, and National Bank has brought on retired general Rick Hillier as an adviser.

For years Canadian banks steered clear of smaller defence names even as allies poured capital into the sector. With federal procurement set to swell and dual-use tech sitting at the centre of both security and productivity, Bay Street’s new credit lines are as much about catching a policy wave as filling a financing gap — capital that can reprice growth, wages and input costs across the supply chain.