Pune/Mattighofen: Bajaj Auto Limited on Thursday informed exchanges that KTM AG, its Austria-based step-down subsidiary, has entered into a €550 million (around ₹5,904.8 crore) loan agreement with an international banking consortium to refinance existing intra-group debt.
KTM AG, a wholly owned subsidiary of Bajaj Mobility AG (formerly Pierer Mobility AG), executed the unsecured five-year loan agreement on February 27, 2026.
The loan has been arranged by a consortium comprising DBS Bank Limited, J.P. Morgan SE, HSBC and MUFG Bank Ltd..
The proceeds will be used to repay an intra-group loan availed from Bajaj Auto International Holdings BV, a wholly owned subsidiary of Bajaj Auto, which had financed KTM AG’s restructuring plan.
According to the filing, the new loan is unsecured and carries a five-year tenor. Bajaj Auto clarified that the transaction does not qualify as a related party transaction under SEBI regulations, apart from KTM AG being its step-down subsidiary.
In a press release, Bajaj Mobility AG said the refinancing fully replaces the €450 million financing extended by Bajaj Auto International Holdings BV in 2025 as part of KTM’s restructuring process.
The company said the refinancing comes at a time when KTM AG’s operational performance has improved in the second half of 2025, with global retail sales rising around 60% compared with the first half. Wholesale deliveries were stabilised in line with demand and inventory levels reduced by over 100,000 units.
KTM also highlighted its continued motorsport momentum, including victories at marquee global events such as the Dakar Rally and multiple world championship titles across motocross and enduro formats.
For Bajaj Auto, the refinancing reduces direct exposure on its balance sheet while strengthening KTM’s standalone financial base through diversified external borrowing.
Market analysts said the participation of four global banks in an unsecured facility of this size signals lender confidence in KTM’s turnaround trajectory, particularly after a challenging 2025.
Bajaj Auto shares (BSE: 532977; NSE: BAJAJ-AUTO) are likely to see investor focus on the group’s international strategy and capital allocation, especially as global demand trends stabilise across premium motorcycle segments.
The company said the intimation has been made in compliance with Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations.