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(Sharecast News) - Payments fintech Klarna on Tuesday said it planned to sell up to $6.5bn of loans to funds managed by Elliott Investment Management over a two-year period, as part of an expansion strategy in the US
The deal allows Klarna to sell part of its existing Fair Financing portfolio to Elliott transfer newly originated receivables to those funds on a rolling basis.
"This is another major step in our U.S. growth journey...This agreement lets `us reach even more Americans who are moving on from traditional credit and choosing fairer ways to pay," said Klarna chief financial officer in a
statement.
The facility is sized at $1bn, but as loans are repaid new ones will be added under a forward flow agreement, allowing Klarna to originate up to $6.5bn of loans over two years.
Reporting by Frank Prenesti for Sharecast.com
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