Nubank (NYSE:NU) says it has received a significant increase in the A/B loan provided by the International Finance Corporation (IFC) – part of the World Bank. Previously, the IFC had committed $150 million. Today, the amount has jumped to $265.1 million which should help fuel the growth of Nubank in Colombia.
The money was sourced from “various large institutions” and will be used to expand access to financial services.
Marcela Torres, General Manager of Nu Colombia, said the increase in the IFC loan is a reflection of Nubank’s leadership 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 Torres.
Nubank noted that IFC has invested in both debt and equity in other financial services in Latin America and the Caribbean, but this is the first 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.
Elizabeth Martínez de Marcano, IFC Director for Colombia, Mexico, Central America and the Caribbean, said the lack of access to financial services and the desire to boost inclusion is why the IFC increased the loan. She added that this means more Colombians will now have access to better financial services.
In about two years of operation, Nu has already reached over 700,000 customers, with the company serving customers in more than 80% of municipalities. The bank reports that nearly 1 in every ten adults in Colombia has applied to become a Nu customer.