Mubadala, Abu Dhabi’s sovereign wealth fund, is negotiating the takeover of Will Bank, a Brazilian fintech acquired by Banco Master in 2024, in a deal that would involve help from Mastercard and Brazil’s FGC (Credit Guarantee Fund), according to sources familiar with the matter.
The Arab fund would inject capital into the fintech, said the sources, who asked not to be identified because the negotiations are not public. The FGC is considering providing a loan to the fintech and is exploring the possibility of converting the debt into equity, according to people interviewed in the Bloomberg report.
Will Bank pays Mastercard for its services and the payments company is considering extending the terms of those payments, according to the people interviewed.
Discussions are ongoing and may not result in an agreement, the sources said. Representatives for Will Bank and FGC declined to comment. Mubadala and Mastercard did not immediately respond to requests for comment.
Will Bank, which offers credit cards to low-income customers under the Mastercard brand, was acquired by Banco Master in 2024. However, last month the Central Bank announced that it would begin the process of liquidating Banco Master due to fraud allegations. The bank denies these accusations.
Will Bank was not included in this liquidation process. Fintech is subject to the Central Bank’s special temporary administration regime, which is seeking alternatives and trying to minimize losses for the FGC and its creditors, including Mastercard.
The special temporary administration regime ensures that Will Bank will not suffer interruptions or suspensions in its normal operations and can be sold with the approval of the stakeholder, according to the people. Laplace Finance, hired by Banco Master to help with the sale of Will Bank, continues to advise on the process, according to sources.
Laplace made no comment.
As of December 2024, Will Bank had 7.1 billion reais in credit card receivables and a disruption in its services could harm consumers and generate potential losses for Mastercard, the sources said. At the end of last year, the fintech had about 7.5 billion reais in deposits that could require FGC’s guarantee in the event of liquidation, the sources said.
Fintech recorded a loss of 244.7 million reais in the first half of this year, according to the Central Bank website.
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