Swiss private bank backs Mbanq’s US-dollar note listing

A Swiss private bank has made the first investment in Mbanq’s newly created institutional funding program by purchasing U.S. dollar-denominated loan participation notes (ISIN DE000A4MGVH3) admitted to trading on the Open Market (Freiverkehr) of the Düsseldorf Stock Exchange.

Mbanq said the capital will support expansion of its lending activities and its Earned Wage Access (EWA) platform, which enables banks, credit unions, fintechs and large employers to allow workers to access wages before payday. The funding program issues U.S. dollar loan participation notes and has an aggregate capacity of up to US$100 million to provide a scalable source of funding for loan portfolio growth.

The notes in the initial placement were issued by Encore Issuances S.A. in respect of compartment 193. Barons Capital Partners SA advised on the transaction. Addleshaw Goddard LLP served as legal counsel. Chartered Investment Germany GmbH will act as servicer and calculation agent. Baader Bank AG was appointed custodian and paying agent, and ICON Asset Management AG will perform risk monitoring.

Mbanq, founded in 2016, has reported profitability since 2019. The company provides core banking systems, Banking-as-a-Service, Lending-as-a-Service, Compliance-as-a-Service, payments, card issuing and embedded finance infrastructure to banks, credit unions, fintechs and enterprise clients worldwide.

Vlad Lounegov, Mbanq’s chief executive, commented: “The inaugural institutional investment represents an important milestone for Mbanq. It strengthens the financial infrastructure that supports our lending business and helps clients scale Earned Wage Access and other lending solutions as demand grows.”

Earned Wage Access is designed to give employees early access to wages they have already earned, reducing reliance on short-term credit. Mbanq said the funding vehicle is intended to support that product line alongside other lending solutions offered through its platform.