- KTM AG cleared the €450 million loan previously extended by Bajaj Auto International Holdings BV.
- The repayment follows a €550 million refinancing arranged through an international banking consortium.
The Bajaj Auto KTM AG loan repayment has officially closed the €450 million secured term loan earlier provided by Bajaj Auto International Holdings BV. The repayment marks the termination of the financing agreement after KTM AG successfully secured a new refinancing facility from a global banking consortium.
According to an exchange filing by Bajaj Auto Ltd, KTM AG pre-paid all outstanding obligations tied to the loan facility extended by its step-down subsidiary Bajaj Auto International Holdings BV. The agreement was formally terminated on March 5, 2026 following the full settlement of the dues.
Refinancing replaces earlier secured loan
Before clearing the earlier borrowing, KTM AG secured a €550 million refinancing loan from a consortium of international banks. The lender group includes DBS Bank Ltd, JP Morgan S.E., The Hongkong and Shanghai Banking Corporation Ltd, and MUFG Bank Ltd.
The newly arranged financing carries a five-year tenure and is structured as an unsecured facility. Interest on the loan falls within the low-to-mid single-digit percentage range, while the agreement also places standard market restrictions on dividend distribution during the loan tenure.
Support during KTM restructuring phase
The earlier €450 million secured loan was originally extended in May 2025 by Bajaj Auto International Holdings BV to support KTM AG’s restructuring efforts. The Austrian motorcycle manufacturer had been dealing with liquidity constraints and operational disruptions during 2024.
In November 2025, Bajaj Auto strengthened its involvement by acquiring a controlling stake in the company and announcing an €800 million financial support package. The funding helped KTM address court-mandated restructuring obligations and avoid insolvency proceedings.
- €450 million secured term loan support
- €150 million through convertible bonds
- €200 million earlier financial assistance package
This capital structure enabled KTM AG to meet a May 2025 deadline requiring repayment of 30% of outstanding claims to creditors under a court-approved restructuring framework.
Operational restructuring and cost optimization
As part of its broader efficiency program, KTM AG announced workforce reductions in January 2026 aimed at lowering operational costs and streamlining production activities. The company planned to cut around 500 jobs as it continues to reshape its operational structure.
The workforce declined to 3,794 employees by December 31, 2025, compared with 5,310 a year earlier, reflecting ongoing restructuring efforts across the organization.
Strategic focus on core motorcycle brands
Meanwhile, Bajaj Mobility AG, the parent company of KTM AG, has been divesting several non-core businesses to sharpen its strategic focus. The group exited the CFMOTO distribution partnership and sold businesses including FELT Bicycles, while also divesting stakes in MV Agusta and X-Bow.
These moves allow the group to concentrate on its key motorcycle brands—KTM, GASGAS, and Husqvarna—while stabilizing operations following financial restructuring.
Despite the recovery initiatives, KTM AG reported consolidated sales of just over €1 billion in FY25, representing a 46% year-on-year decline amid operational disruptions and restructuring measures. The Bajaj Auto KTM AG loan repayment therefore marks a significant milestone in the company’s ongoing financial stabilization efforts.
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