A new geopolitical environment that calls for collective action
Since 2025, rising geopolitical tensions and the erosion of long-standing balances, and Europe’s need to bolster its strategic autonomy have profoundly altered perceptions of the defence sector. Long overlooked by some investors, the defence sector is now widely acknowledged as a pillar of sovereignty, collective security and economic resilience for Europe.
This, in turn, has spurred greater mobilisation efforts by European and national authorities, along with increased awareness of the role that financial actors can play in supporting this transformation.
BNP Paribas’s commitment to the defence sector
With this in mind, BNP Paribas has stepped up its support significantly across all components of the defence ecosystem: not only for major groups, but also for small-, medium- and intermediate-sized companies and innovative companies that make up the Defence Industrial Base. Since its initial announcement in March 2025, BNP Paribas has leveraged all available tools:
by financing these companies;
by investing in defence, both on behalf of its clients (via investment solutions) and for the Group’s own account (through direct investments).
Defence sector financing by BNP Paribas: figures and key points as of end-2025
BNP Paribas had deployed EUR 26 billion as of end-2025, up by EUR 2 billion.
On defence bond markets, via its Corporate and Institutional Banking (CIB) division, the Group supported EUR 71 billion of issuance from 2022 to 2025.
On the equity markets in 2025, BNP Paribas served as lead on most of the primary market issuances by European defence companies, helping them to strengthen their equity capital.
In October 2025, BNP Paribas launched the inaugural issue of its “EU Sovereignty Bond”, which channels capital into sectors that, in line with the Draghi report’s major guidelines, are strategic for European sovereignty, including aerospace and defence, infrastructure, and critical industries and technologies.
BNP Paribas’s investments in the defence sector: key points as of end of 2025
By the end of 2025, BNP Paribas had raised EUR 9 billion in assets in the European defence and sovereignty sector, to reach EUR 11.5 billion including AXA Investment Managers.
These heavy inflows were primarily driven by:
- BNP Paribas Asset Management has launched three new products: the "BNP Paribas Easy Bloomberg Europe Defense" ETF, an innovative ETF that replicates the performance of listed European defence companies; the "Athena Prestige Europe Aerospace & Defense" mutual fund; and the "BNP Paribas Europe Strategic Autonomy" European thematic equity fund, designed to leverage the evolving geopolitical landscape and Europe’s increasing emphasis on security, resilience, and self-sufficiency.
BNP Paribas Cardif has expanded investments, particularly through its Emergence SICAV defence fund and with strategic equity investment funds (fonds stratégiques de participations), in which several insurance companies invest in assets that are strategic to France, such as the assets of the ADIT group.
BNP Paribas Wealth Management has revised and expanded offering to include structured products and its launch of a management mandate dedicated to European sovereignty, as well as an allocation within the same strategy under its MyMand@te solution.
BNP Paribas Développement, the BNP Paribas subsidiary that invests the Group’s own capital to support the growth of high-potential SMEs, mid-cap companies, and startups, has continued its investments in French defence sector companies. As of 31 December 2025, these direct investments in defence and security industry (BITD) players amounted to a total commitment of EUR 177 million. These investments contribute to fostering innovation and growth, particularly in technological defence, cybersecurity, AI, and critical equipment.
BNP Paribas Commercial and Personal Banking in France (CPBF) plans to launch a management mandate dedicated to European sovereignty. It will be offered as part of a separately managed account.
These amounts are primarily directed towards European industry: 70% of financing and 80% of investments.
In an increasingly fragmented geopolitical landscape, strengthening Europe’s sovereignty and security is a shared responsibility. BNP Paribas is leveraging its full range of expertise to support defence sector stakeholders - including major corporations, SMEs, and mid-cap companies - as they contribute to collective security, strategic autonomy, and industrial competitiveness. Our Commercial Banking teams in France provide them with tailored financing and investment solutions to address their growth, resilience, and sovereignty challenges."
Taking responsibility for Europe
As Jean Lemierre, Chairman of the Board of Directors of BNP Paribas, noted: “Supporting European sovereignty means supporting its values.” In a fragmented world, Europe’s capacity to defend itself, to protect its citizens, and to preserve its democratic model are prerequisites for any long-term ambition.
A rigorous, responsible & transparent framework
BNP Paribas’s support for the defence sector operates within a rigorous framework based on a dedicated sector policy updated in 2025. Its goal is to work with the entire sector while providing a clear and demanding framework for defence companies.
This includes:
activity and equipment exclusions,
eligible countries,
ESG research and assessment criteria.
Each financing or investment is accordingly subject to due diligence* that includes both financial and extra-financial criteria and a review of compliance with international agreements. These high standards help ensure strict compliance with existing rules and with the Group’s values and convictions.
* Due diligence: an in-depth investigation conducted prior to a business transaction or relationship, to verify the identity and integrity, as well as the financial, legal and operational standing and compliance of the party concerned.
Growing demand from clients
BNP Paribas is responding to a profound change in client expectations. More and more investors regard security, stability and sustainability as closely intertwined and believe that no environmental or social transition is possible without a solid foundation of security. Clients seek to integrate their convictions into the traditional risk-return relationship.
Based on its long-standing expertise, BNP Paribas accelerated its commitment in 2025 to supporting defence companies in their development and growth by offering them bespoke financial services and innovative solutions tailored to their future needs."
One year after announcing an acceleration of its support for the sector, BNP Paribas has confirmed its role as a responsible bank working alongside companies, investors and institutions to drive a transformation expected to be long term. This commitment is an integral part of the Group’s diversified and integrated model and its desire to actively contribute to the security, stability and competitiveness of the European economy.
