Ukraine Launches Historic $513M Defense Loan Consortium to Scale Military Manufacturing

Six Ukrainian banks have signed a three-year consortium loan worth about $513 million under state guarantees to finance a Ukrainian defense-industry enterprise, according to Ukraine’s Defense Ministry on December 29. 

The Defense Ministry said the deal is the largest consortium lending agreement in Ukraine’s financial market history, bringing together banks from both the public and private sectors, with a state-owned bank acting as the lead arranger.

The Defense Ministry Denys Shmyhal added that the agreement would help defense manufacturers scale up and modernize production. 

“Financing the defense industry is one of the key pillars of state resilience during wartime,” Shmyhal said, adding that the Defense Ministry worked for more than four months with the National Bank of Ukraine, the Ministry of Finance, and lenders to set up the mechanism.

“This means more Ukrainian-made weapons for our defenders,” he said. 

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Shmyhal said the state already supports Ukrainian manufacturers through soft loan programs, and that private enterprises in Ukraine’s defense industry attracted nearly $119 million in financing in 2025.

“The new consortium initiative in the defense industry builds logically on this experience,” National Bank Governor Andrii Pyshnyy said, referring to earlier efforts by lenders to finance and provide credit support to Ukraine’s energy sector after large-scale Russian attacks. 

Earlier, it was reported that Germany committed over $1.3 billion in military support to Ukraine, including Patriot systems and artillery, with Denys Shmyhal highlighting cooperation on spare parts, drone production, and electronic warfare.

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