KTM AG, a wholly owned subsidiary of Bajaj Mobility AG and step-down subsidiary of Bajaj Auto Limited, has entered into a loan agreement amounting to €550 million (approximately Rs 5,904.8 crore at an assumed exchange rate of 1 Euro = Rs 107.36).
The agreement was executed on 27 February 2026 and the information was received by Bajaj Auto Limited at around 5:00 p.m. IST on the same day.
Lenders Involved
The loan has been arranged through four banks:
- DBS Bank Limited
- J.P. Morgan SE
- HSBC
- MUFG Bank Ltd.
KTM AG does not hold any shareholding in these entities. Other than being a step-down subsidiary of Bajaj Auto Limited, none of the parties involved are related to the promoter or promoter group companies.
Purpose of the Loan
According to the disclosure, the proceeds from the loan will be used to repay an intra-group loan availed from Bajaj Auto International Holdings B.V. This earlier funding was used to finance a restructuring plan. The new loan replaces the earlier €450 million financing extended in 2025.
Key Terms of the Agreement
- Type: Unsecured loan
- Tenure: 5 years
- Amount: €550 million
- Outstanding Amount: Nil at the time of disclosure.
No special rights such as board nomination rights or capital structure restrictions have been disclosed in relation to the agreement.
Corporate Background
Bajaj Mobility AG (formerly PIERER Mobility AG) is the holding company of KTM AG and a listed subsidiary of Bajaj Auto Limited. KTM AG operates motorcycle brands including KTM, Husqvarna Motorcycles, and GASGAS. The refinancing has been communicated as part of regulatory disclosures under SEBI’s Listing Obligations and Disclosure Requirements.
