Bajaj Auto Limited has informed the Exchange about loan agreement entered into by KTM AG, a step-down subsidiary of Bajaj Auto Limited.
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Bajaj Auto's step-down subsidiary KTM AG has entered into a loan agreement for Euro 550 million (about Rs. 5,904.8 crore) with four banks: DBS Bank, JP Morgan SE, HSBC, and MUFG Bank. The loan is unsecured with a 5-year term and interest in the low to mid-single-digit percentage range. The proceeds will be used to repay an existing Euro 450 million intra-group loan from Bajaj Auto International Holdings BV, which was originally given as part of KTM's restructuring plan in 2025. KTM AG reported strong recovery in H2 2025, with retail sales up about 60% versus H1, and inventory reduced by over 100,000 units.
This refinancing replaces expensive internal debt with cheaper bank financing, strengthening KTM AG's financial position. The fact that major global banks extended an unsecured 5-year loan signals confidence in KTM's turnaround, which is positive for Bajaj Auto's overseas subsidiary value, though the large subsidiary debt also remains an exposure to monitor.