Klarna (NYSE: KLAR) has completed a $518 million Significant Risk Transfer agreement designed to free up capital and support $12 billion in additional consumer lending, according to a press release from the company.

The 3-year deal is the second such transaction Klarna has completed with the same undisclosed institutional investor. The company said the arrangement is part of a broader capital-efficiency program that pairs SRTs with forward-flow and warehouse financing.

"Demand for our products continues to grow and transactions like this let us fund it efficiently, while an existing investor returning for a second securitization is a real vote of confidence in the quality of our underwriting," said Klarna Chief Financial Officer Niclas Neglén.