IFC A/B loan to Nu Colombia reaches $265 million, fueling Nu’s continued growth in Colombia
The new amount results from the oversubscription of the B Loan syndicate composed by commercial banks, reaffirming IFC and financial market’s confidence in Nu's growth and potential in Colombia
Sep 25 , 2023
Bogotá, September 25, 2023 – Nubank, one of the world’s largest digital financial services platforms, has announced a significant increase in the A/B loan provided by the International Finance Corporation (IFC). From the initial commitment of USD 150 million, announced in January 2023, the amount has now been increased to USD 265.1 million resulting from the oversubscription of the B Loan syndicate composed by commercial banks, reaffirming IFC and financial market’s confidence in Nu’s growth and potential in Colombia.
The additional funding, sourced from various large institutions, will not only drive Nu’s operational growth but also will also contribute to the significant expansion of access to the financial services it offers in the country.
“This increase in IFC’s loan reflects confidence in Nu’s leadership in digital financial services in Colombia. With more than 300 thousand cards issued in the last 10 months, we are driving positive change across the country, increasing access to financial services. We are the first ever credit card for 30% of our customers, and we have already reached 100% of Colombia’s departments. We are certain that our impact will continue to grow over the years to come,” said Marcela Torres, General Manager of Nu Colombia.
The additional USD 115+ million not only exceeded all expectations due to the magnitude of the disbursement, but also is an unprecedented operation: although IFC has invested both equity and debt in other digital financial services providers in Latin America and the Caribbean, this is IFC’s first investment in a digital bank in the region.
“The growth we have seen in Colombia has exceeded our most ambitious expectations. 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.
“The lack of access to financial services is an obstacle to boost inclusion in Colombia. Digital transformation offers new opportunities to improve financial inclusion and promote productivity. This increase in IFC´s loan means that more Colombians will have access to more and better financial services, which fills us with enthusiasm and pride,” said Elizabeth Martínez de Marcano, IFC Director for Colombia, Mexico, Central America and the Caribbean.
The funding increase also demonstrates Nu’s strength and reinforces confidence in its commitment to Colombia. In just over two years of operation, Nu has already reached over 700,000 customers, with the company serving customers in more than 80% of municipalities; additionally, nearly 1 in every 10 adults in Colombia has applied to become a Nu customer.
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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