Brazilian digital bank Nubank raises US$650 million to expand in Mexico and Colombia

RIO DE JANEIRO, BRAZIL – Nubank, Latin America’s most valuable fintech company and one of the world’s largest digital financial services platforms, said the three-year local currency loan “reaffirms its long-term vision and commitment to the region, where it aims to promote technological development and financial inclusion.”

Brazil’s Nubank, the largest digital bank in Latin America, reported that it has taken out a US$650 million loan to finance the expansion of its operations in Mexico and Colombia, where it currently only offers credit cards under the “Nu” brand.

The loan was granted jointly with banks Morgan Stanley, Citi, Goldman Sachs, and HSBC, which also accompanied Nubank’s IPO last December, in which the company raised US$2.8 billion, debuting on the New York Stock Exchange as one of Latin America’s largest companies in terms of market value.

Nubank, Latin America’s most valuable fintech company and one of the world’s largest digital financial services platforms, said the three-year local currency loan “reaffirms its long-term vision and commitment to the region, aiming to promote technological development and financial inclusion.”

“The rapid growth in Mexico and Colombia has exceeded our most ambitious expectations,” Nubank’s president and founder, Colombian David Vélez, was quoted as saying in a statement released by the digital bank in Brazil.

He added that the bank “will double its engagement in Mexico and Colombia to continue growing and creating positive local impact through financial inclusion for millions of Latin Americans.”

Founded in 2013, Nubank currently has 54 million customers, most of them in Brazil. It will begin operations in Colombia in 2020 and Mexico in 2019, which is already the largest credit card issuer.

By the end of last year, the digital bank had issued 1.4 million credit cards to its customers in Mexico and 114,000 in Colombia.

The company said the credit it received will ” develop technology and product innovation in both countries, growing its customer base and attracting the best talent in the region.”

The market assumes that Nubank will also offer checking, savings, and investment accounts and loans and insurance in Colombia and Mexico, as it does in Brazil.

This would make Nubank a comprehensive digital bank in the three countries, which account for 60% of Latin America’s gross domestic product (GDP) and population.