The funding will be provided under the Danish model, which aims to purchase weapons from Ukrainian manufacturers in accordance with the proposals and needs of the Ukrainian Defense Forces.
This is the model Zelenskyj is recommending, I'm guessing it both helps financially for Ukraine to make their own weapons, and it avoids problems with restrictions on the use of weapons to defend Ukraine.
Denmark has been a very strong proponent for lifting all limitations to only conform to international agreements like the Geneva convention.
Denmark also broke the barrier for aid with the F-16 donations together with Netherlands.
It's very nice to see other European countries supporting these policies, if EU could agree with this, Ukraine would be much better off, and would probably be able to better handle not getting aid from USA.