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.