Bajaj Auto’s KTM AG Secures EUR 550 Million Loan Agreement
Filing Summary
Bajaj Auto Limited’s step-down subsidiary, KTM AG, has entered into a loan agreement for EUR 550 million with an international banking consortium. The agreement involves four banks: DBS Bank Limited, JP Morgan S.E., The Hongkong and Shanghai Banking Corporation Ltd., and MUFG Bank Ltd. The loan, which is unsecured and has a five-year term, will be used to refinance an intra-group loan from Bajaj Auto International Holdings BV. The refinancing aims to repay the EUR 450 million financing granted in 2025. The transaction was executed on February 27, 2026.
Bajaj Auto Limited has announced that its step-down subsidiary, KTM AG, has secured a loan agreement amounting to EUR 550 million. This agreement was executed with an international banking consortium comprising DBS Bank Limited, JP Morgan S.E., The Hongkong and Shanghai Banking Corporation Ltd., and MUFG Bank Ltd.. The loan is intended to refinance an existing intra-group loan from Bajaj Auto International Holdings BV, a wholly-owned subsidiary of Bajaj Auto Limited.
The loan agreement specifies that the EUR 550 million will be used to repay the previous financing of EUR 450 million granted by Bajaj Auto International Holdings BV in 2025. The loan is unsecured and has a term of five years. The interest rate is structured as EURIBOR plus a margin, falling within the low to mid-single-digit percentage range. The refinancing aims to provide KTM AG with a stable and long-term financial foundation.
The operational scope of this agreement involves the complete refinancing of the existing debt with Bajaj Auto International Holdings BV. The new loan replaces the previous financing arrangement and is expected to stabilize KTM AG’s financial base. The refinancing is part of KTM AG’s broader strategy to enhance its financial structure and support its operational performance improvements.
The agreement was executed on February 27, 2026. The loan is unsecured, indicating no collateral is required from KTM AG. This refinancing transaction is part of KTM AG’s ongoing efforts to optimize its financial resources and align its capital structure with its strategic objectives.
The parties involved in this agreement include KTM AG as the borrower and the four banks as lenders. KTM AG is a wholly-owned subsidiary of Bajaj Mobility AG, which in turn is a step-down subsidiary of Bajaj Auto Limited. The transaction does not involve any related party transactions, as none of the banks are related to Bajaj Auto Limited’s promoter group or group companies.
The refinancing comes at a time when KTM AG has shown signs of operational improvement. In the second half of 2025, global retail sales increased by approximately 60 percent compared to the first half of the year. Wholesale deliveries were stabilized, and inventory levels were reduced significantly. These operational improvements are part of KTM AG’s strategy to enhance its market position and financial stability.
Bajaj Mobility AG, formerly known as Pierer Mobility AG, is a global leader in premium motorcycles and a listed subsidiary of Bajaj Auto Limited. The company is recognized for its innovative engineering and strong product portfolio, which includes brands like KTM, Husqvarna Motorcycles, and GASGAS. Bajaj Mobility AG benefits from Bajaj Auto Limited’s technological expertise and global distribution network.
Bajaj Auto Limited is a leading manufacturer of two- and three-wheelers. The company focuses on delivering high-performance vehicles and expanding its global reach. Bajaj Auto Limited continues to leverage its subsidiaries to enhance its market presence and drive long-term value creation in the automotive industry.