Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) has helped the International Finance Corporation (IFC) lend US$150 million to the Colombian subsidiary of Brazil’s Nubank.
Latin Lawyer understands that Herbert Smith Freehills and Walkers also advised the IFC, while Clifford Chance LLP advised the borrower, but this could not be confirmed prior to publication.
The deal was signed on 23 December.
The loan comes with a three-year term and will be issued in two tranches. Cayman Islands-based Nu Holdings is acting as guarantor.
The borrower, known as Nu Colombia, will use the funds to develop its local offering. As part of that, the company’s plan to contribute to the country’s digital transformation, stimulate economic growth and provide widespread access to financial services.
The deal also marks the IFC’s first investment in a digital bank in Latin America.
Several other Colombian fintechs have scored financings recently. In September, RappiPay – a joint venture between delivery company Rappi and Banco Davivienda – obtained a US$112 million credit line after Financial Superintendence of Colombia authorised the company’s proposal to offer digital banking services.
Nubank is Latin America’s largest digital bank. The São Paulo-headquartered company debuted on the New York and B3 stock exchanges in 2021, raising US$2.6 billion in a dual initial public offering.
The bank’s services are available in Brazil, Colombia and Mexico. It has also set up offices in Argentina, Germany and the US.
Counsel to the International Finance Corporation
Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partner Juan Fernando Gaviria and associate Giulio Pacini in Bogotá