Klarna Adds Germany to Its Capital Efficiency Platform With €900m Facility Supporting €5bn of German Financing Expansion

NEW YORK--(BUSINESS WIRE)--Klarna, the global digital bank and flexible payments provider, has established its first forward flow and warehouse financing agreement in Germany, a €900 million facility to fuel growth of its consumer financing products.

The facility responds to robust demand for Klarna's Fair Financing products in one of Europe's largest consumer markets.

"Fair Financing continues to see strong momentum with German consumers," said Niclas Neglén, Chief Financial Officer, Klarna. "This facility is a natural next step, bringing greater capital efficiency as we scale that growth further. We're pleased to welcome new partners to this structure, drawn by the strong credit quality of these products."

Under the two-year agreement, Klarna has sold a portfolio of its German Fair Financing term loans and will sell newly originated German Financing receivables on a rolling basis, providing scalable, off-balance-sheet funding while retaining all consumer-facing activities, including underwriting and servicing.

Note to editors

The facility size is $900mn. Over the course of the two-year term, as underlying assets amortize, new loans will continuously enter the facility. In this way, Klarna expects the amended agreement to facilitate the origination of up to €5bn-worth of German Fair Financing term loans during the remaining life of the program.

About Klarna

Klarna is a global digital bank and flexible payments provider. With over 119 million global active Klarna users and 3.4 million transactions per day, Klarna’s AI-powered payments and commerce network is empowering people to pay smarter with a mission to be available everywhere for everything. Consumers can pay with Klarna online, in-store and through Apple Pay & Google Pay. More than one million retailers trust Klarna’s innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. Klarna is listed on the New York Stock Exchange (NYSE: KLAR). For more information, visit Klarna.com.

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