KTM AG granted refinancing loan worth €550 million

Bajaj Mobility AG has confirmed that KTM AG has secured a refinancing loan worth €550 million (around £479.6 million) to repay Bajaj Auto International Holdings B.V.

The news comes as another welcome step in KTM’s financial restructuring, which has gone through the wringer over the last 18 months or so.

For those that don’t know the full story, in short, KTM went into self-administration, let go of hundreds of employees, paused production on two separate occasions, and was kept afloat by creditors and by an injection of cash from Bajaj, which is now in complete control of the Austrian manufacturer. 

More recently, KTM AG’s former owner, Pierer Mobility AG, has been rebranded Bajaj Mobility AG, as part of the takeover by the Indian firm. 

The new refinancing loan has been granted by an international banking consortium, and it is unsecured with a five-year term.  

A press release from Bajaj Mobility AG, said: 

“As part of last year’s restructuring, Bajaj Auto International Holdings B.V. provided KTM AG with a loan of €450 million in May 2025 to finance the restructuring plan quota. The current refinancing loan agreement is granted by an international banking consortium and has a total volume of EUR 550 million.

“The loan is unsecured, has a 5-year term, and bears interest in the low to mid-single-digit percentage range. During the term of the loan agreement, KTM AG is subject to market-standard restrictions on dividend distributions. With the signing of this loan agreement, the refinancing measures of KTM AG will be completed.”

KTM’s restarted motorcycle production, which began last summer, recently led to the arrival of the new 990 RC R Track model, which is set to feature at the new KTM 990 RC R Cup alongside the road-going 990 RC R.

Find the latest motorcycle news on Visordown.com.