Nubank announced a significant increase in the A/B type loan granted by the International Finance Corporation (IFC). Initially committed in January 2023 for a total of USD$150 million, the total amount has recently been raised to USD$265.1 million.
The IFC‘s operation will be carried out through an increase in the subscription of the syndicated loan B, involving commercial banks.
The additional funds of over USD$100 million have not only exceeded all expectations due to the amount disbursed but also constitute an unprecedented operation.
Although the IFC has invested in equity and debt in other digital financial services in Latin America and the Caribbean, this is the first time it invests in a digital bank in this region.
“The growth we have seen in Colombia has exceeded our most ambitious projections. This loan reflects the confidence of institutions throughout the region in our business model and growth potential,” said David Vélez, CEO, and founder of Nubank.
These additional resources from various institutions will not only boost the operational growth of Nu but also significantly expand access to the financial services the company offers in the country.
In just over two years of operation, Nu has already reached over 700 thousand customers and has a presence in over 80% of the municipalities. Additionally, 1 in 10 adults has applied to be a customer of the company.
“The lack of access to financial services is a barrier to driving inclusion in Colombia. Digital transformation offers new opportunities to improve financial inclusion and increase productivity.
“This increase in the loan means that more Colombians will have access to more and better financial services, which fills us with enthusiasm and pride,” highlighted Elizabeth Martínez de Marcano, IFC Director for Colombia, Mexico, Central America, and the Caribbean.
The growth of Nubank has solidified in 2023. In the first quarter of this year, it earned USD$141.8 million in profits, in contrast to the scenario of losses of USD$45.1 million in the same period last year.
The revenue of the Brazilian bank, which also operates in Mexico and Colombia, was USD$1,618.7 million, representing an 85% increase compared to the first quarter of 2022.