KTM AG Secures €550 mn Loan to Refinance Existing Debt With Bajaj Auto

KTM AG, a step-down subsidiary of Bajaj Auto Ltd, has secured a €550 million refinancing loan from an international banking consortium to refinance its existing debt with Bajaj Auto International Holdings B.V., according to an exchange filing.

In May 2025, Bajaj Auto International Holdings B.V. extended a €450 million loan to KTM AG to finance its restructuring plan.

The refinancing loan is unsecured, has a 5-year term, and bears interest in the low to mid-single-digit percentage range, the company said. During the loan period, KTM AG will be subject to standard market restrictions on dividend distribution.

With the signing of the agreement, the refinancing measures of KTM AG are complete, the company added.

The refinancing move strengthens KTM AG’s financial foundation and reduces reliance on intra-group funding. It also signals improved access to global capital markets following last year’s restructuring exercise.

KTM AG has been undergoing a broader strategic reset. In January 2026, it announced plans to cut around 500 jobs under an efficiency programme aimed at lowering costs and simplifying operations. Headcount stood at 3,794 as of December 31, 2025, down from 5,310 a year earlier.

As part of the realignment, Bajaj Mobility AG—the parent company of KTM AG —has divested non-core assets. These include the sale of FELT Bicycles, the exit from CFMOTO distribution, and the divestment of stakes in MV Agusta and X-Bow. The group is now focused solely on its core motorcycle brands: KTM, GASGAS and Husqvarna.

In FY25, the company reported consolidated sales of just over €1 billion, marking a 46% year-on-year decline.

Bajaj Auto completed the acquisition of a controlling stake in KTM AG in November 2025. Earlier, in late 2024, KTM and its subsidiaries had entered restructuring after facing severe liquidity stress and operational disruptions. Bajaj Auto stepped in with an €800 million support package to help KTM meet court-mandated restructuring obligations and avoid insolvency.

This included a €450 million secured term loan and €150 million through convertible bonds, in addition to an earlier €200 million support package. The funding enabled KTM to meet a May 2025 deadline to pay creditors 30% of outstanding claims under its court-approved restructuring plan.