Klarna has completed a Significant Risk Transfer transaction covering euro-denominated loans in collaboration with Värde Partners, a US-based firm, enabling lending of over $40 billion. 7 billion, is a three-year agreement aimed at enhancing capital efficiency. The SRT transaction allows Klarna to maximize every unit of capital to support its continued growth, according to CFO Niclas Neglén.
He highlighted that the company's banking license is one of its biggest competitive advantages, and this is its largest and most efficient SRT transaction to date. This move comes as Klarna's stock has fallen over 65% since its listing in New York last year, based on major media reports. 4 million transactions per day, according to major media.
The specific terms or interest rates involved in the SRT transaction remain undisclosed, and it is unclear how exactly the freed-up capital will be deployed by Klarna. Additionally, the detailed financial impacts or risks of this SRT transaction for Klarna and its investors have not been specified.