Canada has been selected as the host nation of a new multinational defence bank as negotiations among the founding countries ended in Montreal on Wednesday, according to two sources.

The decision was made after the final of three rounds of negotiations hosted by Canada and involving the approximately 19 founding countries of the Defence, Security and Resilience Bank.

The Globe is not identifying the sources who were not permitted to speak publicly about the matter.

Once established, the bank could include as many as 40 countries, all NATO members and their allies, and will provide long-term, low-cost financing for defence projects undertaken by participating countries.