Nubank raises R$1.59B in financial bills (letras financeiras)

Nubank, the Brazilian digital banking giant, has raised R$1.59 billion (roughly $1.59B) through the issuance of letras financeiras — a type of Brazilian financial bill used by banks to raise medium-term funding. The debt was split into two tranches: the first, worth R$1.066 billion, carries a two-year maturity at a rate of CDI + 0.39%; the second, worth R$522 million, has a three-year maturity at CDI + 0.49%.

As Nubank continues to scale its lending operations across Latin America, securing longer-term funding at competitive rates is critical. Letras financeiras, which typically require a minimum two-year term, help the neobank diversify its funding base beyond customer deposits and international capital markets.

Brazil's benchmark interest rate remains elevated, meaning Nubank is locking in debt tied to a high CDI rate. If the economic environment deteriorates or credit quality weakens, the cost of servicing this debt could weigh on margins. The company also faces growing competition from both traditional banks and other fintechs in the region.

Nubank's ability to place R$1.59 billion in domestic debt at tight spreads over CDI underscores how far the world's largest independent neobank has come since its venture-backed days. Classified as late stage on Dealroom, it is now effectively competing with incumbent banks for institutional funding — a shift that could give it a durable cost-of-capital advantage over smaller fintechs still reliant on equity or offshore markets.