The British government has turned down Ottawa’s attempts to have it join the international Defence, Security and Resilience Bank, though London says it will work in lockstep with Canada to meet NATO spending targets.

The DSRB is meant to reduce borrowing costs for military spending by pooling credit strength among allies.

Canada has tried for months to convince the U.K. to join the project, but London has instead been pursuing its own program called the Multilateral Defence Mechanism.

Both countries agreed Sunday to craft a framework for cooperation between both banks, “having mutually concluded that it is best to develop two distinct but complementary institutions.”

The two will “work in close partnership” on investment opportunities and challenges, according to a joint media statement.

The DSRB will be based in Canada and has the support of countries such as Belgium, Turkey and Ukraine.