Digital financial services platform Nubank has received a loan of up to US$150 million from the International Finance Corporation (IFC) to fund its operations in Colombia.
The loan marks the IFC’s first investment in a digital bank in Latin America and the Caribbean.
Nubank will use the three-year local currency loan to grow its presence in Colombia, where it aims to promote access to 100% digital financial services.
Nu Colombia, a subsidiary of Nubank, has issued more than 400,000 cards over the past 10 months, making it the fastest-growing credit card issuer in the country.
IFC managing director Makhtar Diop said its loan to the bank means more Colombians will have access to “more and better” financial services.
“Greater financial inclusion is a must for economic growth, and digital banking will play a key role in meeting the needs of underbanked and unbanked retail customers.
“This investment aims to both address those needs and to catalyse further investment in the financial sector in Colombia and the region,” Diop added.
“We are very proud that an institution like IFC has trusted us to continue generating a positive impact in Latin America,” said David Vélez, CEO and founder of Nubank.
“This loan reflects confidence in our business model, the solidity of our operation, and the contributions we are bringing to Colombia’s financial inclusion, a country with low financial services penetration and high use of cash.”
The credit line was financed by Morgan Stanley, Citi, Goldman Sachs and HSBC, underwriters for Nubank ‘s December 2021 IPO.